Portco sale deal just fell through. What now?
I’m a first time VP at a healthcare Portco that went on the market. We had a lot of interest when we went on the market but now all of our potential buyers backed out. What typically happens now? Can’t go into many details but our financial performance and growth is pretty strong.
Del
Unless there’s something fundamentally wrong with the business, you usually go back to “heads down” growth and try again in 6-18 months. Sometimes a sponsor may look for interesting M&A to spice up the story/financial profile.
Very common, usually just go back out into the market in the next 3-24 months, usually around 6-12 though. Typically will either just continue as is if the sponsor has faith in place, whereas you'd go to market pretty soon, sometimes will see selective M&A or strategic overhauls for story reasons, but for those that have that, you're usually looking at a longer timeline. Really just depends on what the sponsor diagnoses as the issue with getting the correct price/enough bidders: do they think the market is the issue or do they think there's something fundamentally misaligned with how the business is being sold.
Divi recap that sucker
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