Healthcare Private Equity Overview, +10 SB
Interested in learning more about private equity as related to the healthcare industry and I can't seem to find that much information. Will give 10 SB for a person that can give a good/comprehensive overview with things like recent deals, financing considerations, other things to consider, multiples, anything specific to PE and LBOs in healthcare. If anybody can direct me to some good resources (websites, books, etc) I would also be willing to give some SBs. Any help would be appreciated.
Voila: http://www.bain.com/publications/articles/global-healthcare-private-equ…
Yeah, already came across that report. Answers part of my question so I'll give a SB.
This is a tad old, but: http://www.mwe.com/files/Uploads/Documents/Events/The-State-of-the-Heal…
These may help as well:
http://mcgladrey.com/content/dam/mcgladrey/pdf/health_care_q3.pdf
http://mcguirewoods.com/news-resources/publications/health_care/top-are…
trends, segments, comps: http://www.duffandphelps.com/SiteCollectionDocuments/Newsletters/Duff%2…
@"iamfromcanada" @pttp07 Couldn't give more than one SB to your posts here so I SB'ed some of your other posts.
Healthcare PE Resources? (Originally Posted: 03/07/2018)
Starting work with a healthcare ib group this summer and would like to learn more about the buy-side. Any books, articles, or other resources that I should check out that are specific to healthcare PE? Advice would be greatly appreciated as well - thanks!
I am currently at an industry agnostic middle market PE firm and have evaluated and invested in companies in the healthcare space.
First off, kudos to you for starting your preparation so early. My advice to you would be to really get a good understanding for the technical aspects of your role in IB (the modeling, different types of business models in healthcare, etc.). Take the opportunity to ask thoughtful questions about the space like, for example, how does Company A generate revenue (how much exposure does the company have to medicare/medicaid reimbursements).
In terms of a good read, I would check out Bain's Global Healthcare Private Equity and Corporate M&A Report 2017 (http://www.bain.com/publications/articles/global-healthcare-pe-and-corp…). Try to keep up with the news because the regulatory environment is constantly changing so a good investor will be able to think about how macroeconomic changes impact a company's business model. I am happy to go into more specifics, feel free to PM me.
I'm on the corp banking side in a healthcare vertical, I will usually start my day scrolling through Modernhealthcare.com, pretty good one stop shop for macro healthcare news. Obvi you're setting yourself up for success by familiarizing yourself with the sector, does your employer specialize in a specific sub industry? as you are probably aware what drives the growth profile for a SNF group vs a biotech is really different.
Can't stress this enough.
I'm at a healthcare-focused private equity firm. Having said that, using "Healthcare" as an industry umbrella is not particularly useful.
Most other industry classifications (a few good examples that come to mind are tech, retail, consumer products, aerospace, heavy industry, shipping/logistics...) are to some degree useful in shorthand to group like businesses. They have some commonality in business model, customer base, ultimate consumer, supply dynamics, heavy/light asset concentration, technological advancement, operating time horizons, etc. that can roll up to expectations for margin profile and risk. (Broad strokes here, guys, broad strokes.)
Healthcare is like none of those. The only commonality that "healthcare" businesses have is a tangential connection to developing, supporting, delivering, or paying for medicine and medical care. Pharma companies are brand portfolios. CDMOs are heavy industry manufacturing. Drug wholesalers are distributors. Pharmacies are retail. Payers are IT. Hospitals are a mess. Service providers to all of these could be anything. Playing the public comps game in healthcare is a total exercise in futility.
But there are sub-segments of healthcare that behave like true industry segments. I think it's a powerful exercise to start separating out some of those divisions (you don't have to reinvent the wheel, there are plenty of industry research reports that do this already) and start to understand what drives them. An early way to root out someone's true exposure to and interest in healthcare is to see how they segment it, and where their excitement is. If someone appears equally eager and enthusiastic about medical device development as they do about healthcare insurance plans, that's a red flag. That's like someone saying they're interested in "business."
For current events in the different segments, dive into the fierce news sites (fiercepharma, fiercebiotech, fierceCRO, etc.). From there jump to industry associations or research reports put together by service providers (accountants/bankers/etc).
helpful thanks!
Healthcare PE (Originally Posted: 11/27/2012)
I'm currently a 26 y/o medicial professional (NOT an MD), who supervises 2 small (and highly profitable) specialty departments at a medium to large community hospital. I've been planning on going to B School for awhile now, but planned to be focused on biotech (Amgen, Genentech) or healthcare.
However, it just came to my attention that there are healthcare specific PE firms. I'm not interested in banking, but out of curiousity, are HC PE firms looking for people with HC backgrounds? Or are they typically more interested in finance people? I think HC PE would be interesting (and of course likely lucrative), so I'd like to know if I would actually have a chance without a IB background.
Thanks in advance.
Those funds do exist, particularly in growth funds, focused on early stage stuff. Are you a PA/DO/DMD/DDS? I think that would be fine if it's in your specialty. If you're an RN/APRN/CRNA that likely won't cut it even with a Penn/Yale/Columbia nursing degree.
Would a PharmD (a pharmacy degree) be okay? What are your thoughts on pursuing healthcare banking with that?
hard to say. A lot of MDs in HC VC but they have some sort of combination of entrepreneurial and extensive research experience. Many also have an MBA and i've also seen corp dev guys sprinkled everywhere.
unless you have a background in pharma or biotech it is really hard and you move to a HC PE/VC fund it is really hard to make the move. HC services/acute care focused or HC REIT PE firms really value the modeling capability vs. industry knowledge (although still important), so you will tend to see guys with deal (IB) experience.
i would shoot for corp dev roles post-MBA and at the biotech firms you mentioned, they both have great programs for mba grads and i think Genentech has some sort of in-hose VC fund, along with JNJ. It should open up some opportunities for you in the HC investing world as you progress up the corporate ladder.
A lot of pre-med/econ double majors undergrad, HC bankers, former HC consultants. Some have MD/MBA, other MPH's, ect.
Bottom line, yes there is a possibility to move into the space. However, if I can sum it up with a quote from an MD after facilitating a job interview recently: "they know a ton about healthcare, but nothing about investing. Cut them."
Thanks guys! I had a feeling it wouldn't be easy to break in.
HealthCare PE research (Originally Posted: 09/19/2014)
Hello guys, working on a health care deal and i remember a while back is stumbled upon a report by deustsche bank called oil & gas for beginners it was really a great read. is there some similar resource for healthcare? been trying to find something but cant find it. If you have please point to it.
This is what you're looking for: http://s3.amazonaws.com/zanran_storage/faculty.fuqua.duke.edu/ContentPa…
Somewhat outdated but perhaps you have a friend with CapIQ or Thomson who can get you the latest.
Thanks a lot :)
At mollitia ab est ut molestiae. Similique ut quo quod sint voluptatem. Quia dolorum praesentium quia quis aut doloribus. Ullam quibusdam in dolorum aut omnis ut.
Dolorum assumenda aperiam dolorum voluptatem vero doloribus. Excepturi voluptatem illo veritatis. Adipisci asperiores in sint voluptatem corrupti. Fugit occaecati eos sunt. Aut eum qui autem saepe.
Placeat sit repellat quis numquam rerum cumque. Qui omnis sint cum. Provident nemo sint quia dolore omnis suscipit architecto. Officiis et in fugit aut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Optio eos alias magni sed asperiores iure. Ex est pariatur expedita architecto commodi. Consectetur iste sunt velit aut.
Aperiam delectus non est iste. Quae voluptatem excepturi repellat deserunt. Culpa eveniet ut fugiat est dolores. Quaerat et laudantium doloribus sint recusandae. Nam est in et atque assumenda quia dolor.
Unde labore sapiente dolore pariatur rem. Voluptatem odio possimus nesciunt est rem. Dignissimos ad aut vitae vel recusandae ut enim.