Case Interview for Healthcare M&A - Help!
I'm interviewing for a fund that invests in hospitals, clinics, health IT in the U.S. I'm from operational background so have never done a case in this area. Anyone have any tips for how to do a healthcare LBO? Specifically, how do you model revenue, market, and growth? What research sources do you use? Any help appreciated here!!
Hey there! It sounds like you're gearing up for an exciting opportunity. Here are a few tips to help you prepare for a healthcare LBO:
Modeling Revenue: In healthcare, revenue is often driven by factors such as patient volume, reimbursement rates, and service mix. You'll want to understand these drivers and how they might change over the investment horizon.
Market Research: Understanding the market is key. You can use resources like BRG EyeOnHealthcare, Daily Dose by Modern Healthcare, and Term Sheet to stay informed. PEHub also had a newsletter that might be useful.
Growth Projections: Growth in healthcare can come from organic growth (like increasing patient volume or expanding services) or through acquisitions (like buying other clinics or hospitals). You'll want to understand both these growth drivers and how they might impact the investment.
Remember, while these resources can be helpful, a lot of what you need to know you'll learn on the job. So don't stress too much and just do your best to prepare. Good luck with your interview!
Sources: Questions about Healthcare M&A, Those who are IB analysts in healthcare, I have a few questions (MUCH APPRECIATED), Growth Equity at MF Arm (KKR / TPG / Blackstone) to LBO PE?
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