Seems like HC services and particularly provider services have a really tough couple of years lately. I don’t know what could really change or break the log jam. Is Healthcare services IB ever going to be the same again?
| +119 | New Article: Dramatic Slide as UBS #22 (US) & New Leadership Desperately Needed | 23 | 1h |
| +89 | Americas M&A League Table Q2 Updated | 39 | 1h |
| +72 | Wealthy Parents / Jaded | 24 | 3h |
| +55 | How are hours rn for SA (interns) | 30 | 7h |
| +47 | Venezuela Debt Restructuring - LAZ vs CVP | 22 | 14h |
| +42 | A COMPLETE GUIDE TO SUMMER INTERNSHIP RECRUITING | 10 | 3h |
| +37 | Boutique firm wants access to my LinkedIn? | 32 | 3h |
| +31 | Investment Banking in Mexico | 9 | 34m |
| +26 | MM bottom bucket bonus | 9 | 3d |
| +25 | UBS GIG, LevFin, FSG Interns working Sundays and 85 hour weeks their first week? | 14 | 3h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
You can’t really roll up private practices that have already been rolled up. Likely will be a lesser amount of new ones due to fewer full fledged providers coming out of med school / CPT codes incentivize large health systems greater than private practices. There’s a few niche subverticals where the PPM rollup strategy is still effective, (gastroenterology, ophthalmology, etc.) but sector volumes overall a lot lighter than what it had been
Is it a permanent shift or will things see a return to normal
Could be some “second bites of the apple” I’d imagine but from a returns standpoint it would likely be lesser than the first deals as a whole …
variable I’m curious about is the amount of people coming out of medschool over the next 3-4 decades given how expensive it’s become… will likely see more responsibilities added to midlevels and some sort of AI usage to bridge the physician gap versus the number of people 65 and up seeking care. Don’t even get me started on the implied quality of care.
Our health will be in the hands of Lauren, (Arizona State, KKG, 2.0 GPA) and a computer … take your vitamins
Healthcare services and PE go together like toothpaste and orange juice now to the general public … thanks Welsh Carson
I think in EMEA you’ve got lots of buy&builds that sponsors mark at 15x but are probably only worth 10-12x. Integrations/synergies often difficult along with regulatory and in some cases reputational risk. And there’s not really enough strategics for exits.
I think what’s currently happening is that many of these sponsors are holding on, often raising (more) junior debt to do some more add-ons and hope for valuations to recover, which likely won’t happen. They will eventually sell and if they can’t they’ll break covenants and the debt funds sell the businesses and you have a valuation reset.
That’s for outpatient services (lab, dental, orthopedics, ophthalmology etc. chains). Anything healthcare tech / software is of course in big trouble though with AI and likely not possible to do a deal at all.
So I think if you’re in investment banking you should pitch structured financing solutions right now and perhaps also look at some of the restructuring cases.
Minima et eligendi aut et doloribus dolor. Aut ut accusantium id id quasi qui. Molestiae laborum deleniti non aut a. Enim ex impedit dolores ipsa est culpa ut. Non inventore hic error suscipit ut.
Quia et eligendi maiores ad quia. Eum iusto dolorum corporis omnis. Voluptate expedita tempora quia animi esse fugit eligendi. Debitis omnis repellendus voluptatem magni aliquam error.
Saepe est quod in maiores praesentium ut. Ratione odit et ducimus iure.
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...