Companies are increasingly staying private for longer, raising ever larger amounts from private equity and venture capital. SoftBank Technology Corp.’s Vision Fund took the lead in an $8 billion backing of Uber in January 2018, a little more than a year before the company’s IPO, valuing the business at $48 billion.
The United States may no longer be the country for entrepreneurs to try out new technology and break things, says Ed Knight, executive vice president and global chief legal and policy officer at Nasdaq. He and Melissa Sawyer, partner at Sullivan & Cromwell, discuss some of the emerging issues in regulation and how regulators are changing their focus.
There were 1,900 deals in the space last year, according to Connecticut-based publisher Irving Levin Associates in its 2019 report “Seniors Housing & Health Care M&A in the 21st Century.” For buyers, the cool kids on the block were long-term care facilities and physician medical groups, which led the charge for deal-making and consolidation.
Private equity is on the prowl for good deals in the healthcare space right now. There’s a lot of competition and money searching for an investment opportunity. Sometimes, those opportunities involve public companies looking to go private.
Despite headwinds that threatened to throw off healthcare deals, mergers and acquisitions were active in 2019. Even big deals weren’t off the table, despite the uncertainty created by a federal judge’s 2018 decision that the Affordable Care Act was unconstitutional. In fact, some of the biggest deals of early 2019 were in the healthcare space.
Keith Pagnani of the law firm Sullivan & Cromwell and Andrew Rymer of the investment bank Centerview Partners talk about what’s driving healthcare deals and what the regulatory process looks like for transactions.
Amazon.com has set its sight on industries outside the disrupted retail space. Why not healthcare? That alarming angle was stoked in 2018 when Amazon teamed up with J.P. Morgan Chase & Co. and Berkshire Hathaway to cut health care costs.
In the past few years activists have broadened their horizons, targeting even small and mid cap companies. Institutional investors are supporting activists more and more, and if you didn’t already have enough keeping you up at night, there are two new trends in this ever evolving landscape that put your company at risk.
Last year was a good year to be an activist; not so much to be a company on the receiving end of a campaign. The wave of shareholder activism last year had corporate leaders on edge.
The current state of M&A activity contradicts predictions made in 2018. Back in December, countless articles predicted a slowing economy would lead to a slow down in M&A but as recession fears have receded, M&A has continued its hot streak.