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.
Heads up! Your company has been targeted for a takeover, and senior leadership needs to handle with grace and ideally, limited negative media. How can the board position the company well with multiple sets of internal forecasts? And how can the board whittle them down to one, defensible forecast before a lawsuit hits?
While bank fundamentals remain strong, current valuations are the lowest since 2004, well before the financial crisis. That could spell bad news across industries, because the health of the financial services sector remains a harbinger of the overall health of global markets. Although there are a few reasons to feel cautiously optimistic about the economy, recession triggers abound.