Firsthand account...

Sunday, April 30, 2006

A provider who asked not to be identified told HME News in early April that the sale of his business to a national company had just fallen through.
"We had due diligence done," he said. "I went through that with flying colors, but they called me and said 'Given what's happening with respiratory meds, we're going to put everything on hold.'
"It has nothing to do with us," he continued. "We're having our most profitable year ever. It has everything to do with the environment."
The national also pulled out of deals with two other nearby HME providers, the source said.
Now, he fears, when the buyer comes back to the table, it will probably offer a lower price.
"The problem is that the multiples you were offered before aren't going to be there--although it depends on your location. "Right now, I have a location that (the buyer) was thrilled about, so they may be willing to pay more."