Paragon Ventures: 25 years of being 'eyes and ears' of providers

NEWTOWN, Pa. - When Paragon Ventures launched in 1994, competitive bidding wasn't even on the horizon. Today, it is the biggest driver of change in the HME industry.

Through it all, the Newtown, Pa.-based mergers and acquisitions adviser, which is in its 25^th year, has remained committed to the industry, says Marc Rose, president and managing partner.

“It feels good to have made it this far and still feel as energetic and as excited as we are,” he said. “We are as passionate about our business now, as we were 25 years ago.”

Rose and Jonathan Sadock, managing partner and CEO, spoke with HME News recently about the industry and their role as the “eyes and ears” for providers.

HME News: What do you like most about what you do?

Jonathan Sadock: We get to see the inside of a lot of incredible businesses—some really wonderful and some with issues that have made it through to the next level. We've also seen some that have had to close as the result of a variety of issues, not the least of which is competitive bidding.

HME: Do you find that you have to manage the expectations of business owners looking to sell?

Marc Rose: Just because a business owner has a reason to sell, that doesn't necessarily mean they are in a position to do so. A lot of the companies will have some kind of life-changing event occur that motivates them to try to liquidate, but the business isn't in the condition necessary to get either a fair price or any price. We become their eyes and ears and their local little M&A department, and we advise them and help them position the company and get it to the point where it's ready to enter the market.

HME: What does the horizon look like for the HME industry?

Sadock: We are going into a period in the next two years that's really somewhat of an undefined period. Something is going to happen in two years, we just don't know what it is. So, what we have seen leading up to this has been quite an increase in the amount of interest and activity of acquisitions because we have already come through all of those changes related to CBP and pricing—the shock factor is gone.

HME: There's been a lot of consolidation in the past few years. What does that mean for the companies that are left?

Rose: The companies that have survived have learned how to run these businesses profitability, despite bidding. Whether they've elected to stay in it or not, the ones left standing have become extremely powerful in their local markets. If you look around the country, they are easy to identify. We are bullish and excited about the prospects on the near horizon.