Choose your path

ATLANTA - In today's environment, buying or selling a DME business requires understanding a range of valuation issues, creative structuring concepts and legal risks to avoid.

At Medtrade in Atlanta, in “Modern Perspectives on Buying and Selling DME Suppliers,” Daniel Brown, a partner at Taylor English Duma LLP, will participate on a panel that will discuss the key issues involved in crafting a growth strategy through acquisition or sale at the right time using the best methods.

HME News: Why include “modern perspectives” in the session title?
Daniel Brown: There's been a change in the business. The economic environment surrounding DME suppliers has caused questions about why one would want to buy or sell or recapitalize. Economic pressures on suppliers are forcing them to be clear about their long-term goals and plans.

HME: What are the valuation issues and legal risks that can pop up in today's M&A environment? How can they be overcome?

Brown: On the legal side, buyers need to make sure their documents foreclose to the fullest extent possible all the liabilities of the business they're buying: audit risks, employee discrimination actions, tax issues, environmental risks, slip and fall litigation, malpractice.  All need to be reviewed as part of due diligence. On the business side, they need to be clear about the value of the company, which is a combination of the local market, the inventory, the payer mix and the product mix, among other things. The offer price derives from those factors, then the parties negotiate.

HME: What's the status of the M&A market for HME right now? And why?

Brown: It's strong because of these market forces that are squeezing some suppliers' profitability. So as some are choosing to exit, others are looking to grow. Consolidation remains a key driver of the market.

HME: If attendees take away one thing from this session, what should it be?

Brown: They need continually to evaluate their market position with reference to growing their business or selling it. And they need to recognize that they should be on one path or the other and understanding what's involved in either direction.

Daniel Brown, partner attorney, Taylor English Duma LLP; Michael Kutsak, president, BBMK Technologies, LLC; Neil Caesar, attorney, The Health Law Center

“Modern Perspectives on Buying and Selling DME Suppliers”

Wednesday, Oct. 25, 1:30 PM - 2:30 PM, Room C210

Contact: Daniel Brown, dbrown@taylorenglish.com, 678-426-4613 (office) or 404-606-2608 (cell)