Tag: Jonathan Sadock
Paragon Ventures enjoys front seat to industry change
May 24, 2024Theresa Flaherty, Managing Editor
NEWTOWN, Pa. – Even after three decades in mergers and acquisitions, Jonathan Sadock and Marc Rose of Paragon Ventures still get excited to see how HME companies are evolving.
“We have the benefit of having so much experience with seeing so many companies and how they – and the HME sector – have evolved to what it is today,” said Sadock, CEO and managing partner at Paragon Ventures.
Paragon, which launched in 1994, has successfully completed more...
M&A and HME: Down but not out
September 29, 2023Theresa Flaherty, Managing Editor
YARMOUTH, Maine – It’s been a challenging year for M&A in the home medical equipment sector, as broader economic conditions have put many buyers on standby, say analysts.
For buyers – both strategic and investors – higher employee wages and increased delivery costs have made them take a closer look at bottom lines and have decreased their appetite for acquisitions, says Pat Clifford.
“After years of acquisitions, the buyers are kind of taking...
Health systems ‘follow patient’ to provide home infusion
May 27, 2022Theresa Flaherty, Managing Editor
YARMOUTH, Maine – With demand for home infusion growing, it’s no surprise that some health systems seek to extend their reach into that market and they’re doing it with the help of big names like AmerisourceBergen, say M&A analysts.
In April, AmerisourceBergen, a global health care company focused on pharmacy services, announced the launch of a program to help hospitals and health systems create or optimize home infusion service lines.
“Hospitals are...
Jonathan Sadock on the appetite for HME
December 29, 2021Theresa Flaherty, Managing Editor
M&A transactions in 2021 ranged from the $2-billion mega merger of AdaptHealth and AeroCare to smaller rollups, says Jonathan Sadock, managing partner of Paragon Ventures.
Sadock, who was a guest on the HME News in 10 podcast in November, says there are several drivers behind that the activity, including deep pockets and the opportunity for horizontal integration, especially in respiratory.
“I believe what’s really interesting are the private equity groups investing...
M&A: Respiratory, complex rehab, resupply top buyer lists
December 3, 2021Theresa Flaherty, Managing Editor
YARMOUTH, Maine – Analysts expect the final months of 2021 to bring a flurry of deal-making as sellers try to get ahead of a possible increase in the capital gains tax in 2022.
When President Biden released his proposed 2022 fiscal year budget earlier this year, it called for an increase to 39.6%, although the rates look more likely to settle around 25% or so, say analysts.
“That has pulled some activity into 2021 for folks on the fence, so I think the fourth quarter...
M&A before, during and after a global pandemic
August 3, 2020Guest Commentary
Since 1965, when the Medicare Trust was first established, entrepreneurial individuals have established and built a wide variety of health care businesses to serve and support a growing population of those in need of medical care. Soon thereafter, the HME sector as we now know it was born.Receiving care and treatment in the safety and comfort of their home quickly became the preferred method for patients to receive medical care. The associated cost savings became increasingly attractive to the U.S....
Paragon Ventures: 25 years of being 'eyes and ears' of providers
December 21, 2018Theresa Flaherty, Managing Editor
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 25th 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...
Home infusion market sees supply-and-demand issues
September 14, 2018Theresa Flaherty, Managing Editor
YARMOUTH, Maine - It has been a hot market in the past, but there aren't a lot of deals being done in home infusion these days, mainly due to a shortage of inventory, say M&A analysts.“There are fewer new startups and the other guys have been consolidating,” said Reg Blackburn, managing director of specialty pharmacy and infusion services for The Braff Group. “It's definitely a supply and demand issue.”That's good news for sellers, with valuations in home infusion remaining...
M&A: Look beyond dollar signs
August 29, 2018Jonathan Sadock
A. It may surprise you to learn that many times a high offered price is not always the best deal. Many other factors must be considered before accepting an offer.
The structure of each proposed offer is also a vital consideration. Is the offer a stock/membership sale or the acquisition of assets? Each carries different opportunities and challenges. Many offers include other components besides cash at closing. They may include a hold-back amount for representations and warranties...
M&A: Be thorough, thoughtful
July 30, 2018Jonathan Sadock
Q. I am interested in acquiring an HME business. How do I find a good business and what should I do to assess the opportunity?A. Start your search by developing an acquisition profile and financing strategy. The profile should determine the business model you are most interested in acquiring. The financing strategy will determine the size and valuation of a business you are able to afford. Recent sales of similar businesses will give you some insight into current market valuations. While...