5 Key Takeaways on Healthcare Private Equity M&A

October 18, 2016

McGuireWoods hosted its 11th Annual Healthcare Provider Conference – Healthcare Finance and Growth on October 11, 2016, in Charlotte. As part of the program, Brad Austin, a private equity partner with McGuireWoods in Charlotte, moderated the Private Equity Trends and Updates panel, with speakers Bret Bowerman, co-founder and managing director at Harbour Point Capital; Brian Chambers, principal at Pamlico Capital; and Bo Hinton, managing director at Coker Capital Advisors. The panelists shared their insights and thoughts on industry-specific deal trends in the marketplace.

Here are our top takeaways from those discussions:

  1. Overall, the market for healthcare private equity deals is strong. Valuations are consistently high, supported by both favorable credit markets and buyers with a desire to deploy capital in the industry.
  2. Investors are interested in businesses serving Medicare Advantage plans and beneficiaries as a means to leverage the transition toward value-based payment models.
  3. Buyers continue to be receptive to “outsourced service provider” targets in an effort to deploy capital in healthcare.
  4. Sponsors continue to pursue buy-and-build opportunities across the physician practice spectrum, given the high level of market fragmentation and proven benefits of scale.
  5. Private equity interest in the healthcare sector will continue to grow, driven by many factors but primarily due to the success of prior deals and the general aging of the population creating more and more demand.

You can view more information regarding the conference on our website. Should you have any questions, please feel free to reach out to Brad Austin or Bart Walker.