Tag: Brad Smith

Coming off a “crazy” year of dealmaking in 2021, the first quarter of 2022 was bound to be slower, driven in part by larger world issues like inflation and the war in Ukraine, says Brad Smith, managing director and partner at Vertess.  But deals are still getting done, as interest remains high in HME from both strategic players and institutional buyers, he said.  “There are fewer headwinds than previous years,” he said. “There’s more certainty and...

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...

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,...

TUCSON, Ariz. - When it comes to mergers and acquisitions in the complex rehab industry, it's not just the two national providers that are making moves, says Brad Smith, managing director and partner at Vertess.“There are others,” Smith said, “particularly a number of regional players, $10 million to $50 million, and smaller players, $10 million and under.”Here's what Smith had to say about why “there are options out there,” even in this considerably consolidated...

YARMOUTH, Maine - Expect to see large regional HME players get bigger in the year ahead as they look to increase their market share, say M&A analysts.“These regionals are really looking to grow their territory,” said Brad Smith, managing director/partner at Vertess. “I think 2018 is going to be a huge year.”And that's building on a strong 2017. In the third quarter of last year, 18 transactions were completed in the HME sector, the highest since 2014, according to The Braff...

ATLANTA - When it comes to acquiring an HME company, buyers need to kick the tires so to speak, said M&A analyst Brad Smith at Medtrade on Monday. “It's like a used car,” said Smith, managing director at Vertess during the session, “Deal or No Deal: Buying and Selling a DME Supplier.” “Are you going to want to spend time shining it up? Any buyer wants a return on investment.”With margins thinner than ever, and a number of providers looking to exit the increasingly...

YARMOUTH, Maine - Teijin Limited's recent announcement that it was exiting the U.S. homecare market is a textbook example of the cooling off of a once red-hot market, say industry analysts.“We've seen these guys coming in and going out like a revolving door,” said Rick Glass, president of Steven Richards & Associates. “The U.S. is such a big market that it looks desirable to these overseas players and then they get in here and find out it's a little more complicated than that.”Teijin...

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 administration,...

MUNICH and DANBURY, Conn. - Although industrial gas giant Linde continues to dip its toe in the waters of home care, its planned merger with Praxair likely won't have a noticeable effect on the HME industry, say M&A analysts.Linde and Praxair in December announced plans to merge, creating a combined company with revenues of about $30 billion. Linde is currently the No. 2 industrial gas company in the world and Praxair is No. 3.“I don't think we'll see much impact from it at all,” said...

A. There are a lot of unknowns for a Trump presidency and what TrumpCare (to coin a phrase) will eventually look like. While his habit of contradicting himself makes it difficult to make exact predictions, there is one clear indication of direction: his appointments, specifically Rep. Tom Price, R-Ga., as Secretary of Health and Human Services.Price, who is himself a physician, has been a long-time champion of the HME industry. In the past, he has introduced several bills to limit or repeal the scope...