When will the M&A market for HME level off?
Here's a sneak peek at The Braff Group Insider for the June issue. (Also, I want to apologize for misspelling peek in my last sneak peek...I hate it when I do that.) This graph breaks down transaction trends for the HME industry from 2009 through the first quarter of 2014. See a pattern?
Commentary from The Braff Group:
Based on proprietary data collected by The Braff Group, the 45-degree ramp up that began in 2010 has clearly reversed direction. Fifteen months past the five-year peak reached in Q4 2012, the downward trend is unmistakable. The good news is that while the market is down, it is not out. We continue to field calls from potential buyers and sellers alike. But the energy that characterized the 2010-2012 run-up has been tamped down by caution fueled by competitive bidding, shrinking margins and runaway audits that squeeze cash flow. All things considered, absent a major and unexpected development, we anticipate that over the next 12-18 months, the market will begin to level off at plus or minus 10 deals per quarter.