With the multitude of changes and challenges in today’s Durable Medical Equipment (DME) marketplace, successful entrepreneurs are seeking new opportunities where they can employ their skill and experience. Typical questions include: What opportunities and markets are right for our company and our customers? How do I successfully enter new, parallel markets without jeopardizing our current DME operation?
Today, private equity groups (PEGs) have a growing presence as buyers of lower middle market healthcare companies. Why? They see the continuing expansion and diversification of healthcare opportunities, ranging from a local group of urgent care centers with wellness options to an array of senior living services with exceptional life quality. PEGs have increasingly moved “downstream” to healthcare companies with annual adjusted EBITDA as low as $500,000, which are regarded as “tuck ins” to existing operating platforms.
Why would a seller of a healthcare company want to consider a PEG as a buyer? Here are three good reasons
The current healthcare marketplace is filled with entrepreneurial opportunities and many business owners are considering whether the time is right for their exit. Each circumstance is unique and there are three important factors that today’s healthcare business principals are considering before finalizing their exit plans.
In today’s marketplace, we see the growing presence of private equity groups (PEGs) as buyers of lower middle market healthcare companies. PEGs have increasingly moved “downstream” to smaller companies with adjusted EBITDA as low as $500,000. This has increased the opportunities for smaller companies as long as they understand that the “buyer eyes” of PEGs can be quite different from those of more familiar strategic buyers.
While the world of durable medical equipment (DME) has experienced more than one random acorn via competitive bidding and related market turbulence, there remain tremendous opportunities for those than can see beyond self-imposed despair and false conclusions.
Here are four reasons that you may want to consider as you look for potential DME investments.
VERTESS is a healthcare-focused Mergers + Acquisitions (M+A) advisory firm that helps owners increase their company’s financial value and negotiate the best price when they decide to sell their own company or grow through acquisition. Our expertise spans diverse healthcare and human service verticals, ranging from behavioral health and intellectual/developmental disabilities to DME, pharmacies, home care/hospice, urgent care, life sciences, and other specialized services and products. Each VERTESS Managing Director has had executive experience in either launching or managing and ultimately successfully exiting a healthcare company.
VERTESS is headquartered in Dallas/Fort Worth, with additional offices in Phoenix, Tucson, Los Angeles, Denver, Boston, and Orlando. For more information visit vertess.com. We are always looking for new Managing Directors with experience as either an owner or director of a healthcare enterprise. Please contact Vaughne Glennie via our Contact page if you are interested in joining our team.