Tag: Pat Clifford
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...
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 forecast: Respiratory dominates, but providers look to ‘do more’
January 15, 2021Theresa Flaherty, Managing Editor
YARMOUTH, Maine – The theme for buyers and sellers in 2021 is “respiratory, respiratory, respiratory,” said Don Davis, president of Duckridge Advisors.
Helping to drive that trend: AdaptHealth, which capped off a busy 2020 by announcing in December that it would acquire AeroCare, which specializes in CPAP, nebulizers, oxygen and ventilators, for nearly $2 billion in cash and shares.
“It’s perfect iteming – the demographics are there,...
M&A: Buyer appetite for HME improves
April 21, 2017Theresa Flaherty, Managing Editor
YARMOUTH, Maine - After a slow first quarter, buyer appetites for HME businesses are picking up, say M&A analysts.
“There's still more sellers than buyers, but transactions are getting done,” said Rick Glass, president of Steven Richards & Associates. “I think we are bottoming out on the reimbursement, and we're slowly starting to get some appetite even in the traditional HME and respiratory space.”
While reimbursement remains dire, the business-friendly new...
Mergers & Acquisitions: Perform due diligence
February 20, 2015Patrick Clifford
A. In mergers and acquisitions, many deals don't actually close for a variety of reasons. In a sector badly in need of a PR makeover, the three most common reasons that turn a close into a chorus of “no's” are perceived shortfalls in compliance, compliance and compliance.The key word here is perceived. With more than fifty shades of grey when it comes to following billing guidelines accurately, one party's standard of compliance may not match another's. If the buyer subscribes to...
Mergers & Acquisitions
December 23, 2014Patrick Clifford
A. You can boil down the reasons that buyers remain interested in acquiring HME providers to three basic concepts.First, as it pertains to risk, it's important to understand that from a buyer's perspective, they are far more concerned with “go-forward” risk, than with the litany of challenges the industry has gone through over the past 30 years. And from a go-forward standpoint, the thinking is that in the aftermath of competitive bidding and the rollout of national pricing in 2016, there...
HME providers look for escape
April 25, 2014Leah Hoenen
YARMOUTH, Maine - Caught between a rock and a hard place, HME providers are asking other providers to purchase their businesses. “The bidding program locked them out of a lot of categories of products, and the audits crippled the categories they were still able to do, so there was really nowhere to go,” said Chris Rice, CEO of Riverside, Calif.-based Diamond Respiratory Care, which has been approached by several other companies in California.A bustle of activity—companies looking...