Tag: Brad Smith
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...
Choppy year ahead in M&A
June 24, 2022Theresa Flaherty, Managing Editor
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...
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,...
Buyers gonna buy, but with later payouts
November 13, 2020Theresa Flaherty, Managing Editor
FORT WORTH, Texas - Despite the challenges of 2020 and the havoc the COVID-19 pandemic has brought to bear on the economy, Brad Smith is bullish on the M&A market for HME. Vertess closed on four deals in the second and third quarters, and is teed up for an even busier Q4 and beyond.
“The strategic buyers are extremely active,” said Smith, managing director/partner at the firm. “There are also buyers outside the industry that aren't strategic coming in, buying into...
The implications of AdaptHealth's upcoming IPO
October 1, 2019Bradley Smith
When AdaptHealth's plan to become a public company was announced in July, ears perked up throughout the HME industry. New IPO listings by DME providers are rare. That could change following Adapt's IPO.
To recap, Adapt will combine with DFB Healthcare Acquisitions Corp., which is currently traded on the NASDAQ under symbols DFBH and DFBHW. Once the combination of companies is completed, it is expected that DFB will change its name to AdaptHealth Holding Corp. and remain listed on the NASDAQ...
What is a recap anyway?
December 20, 2018Liz Beaulieu, Editor
HME News asked Bradley Smith, a managing director and partner at Vertess, to explain:
“Instead of buying a whole company, like a strategic investor would, a recapitalization typically involves a legacy owner holding on to a minority percent of the stock in the company, referred to as 'rolling equity.'
This has two benefits. First, most owners have the majority of their net worth wrapped up in that one company and they don't want to sell the whole thing and walk away. A recapitalization...
M&A for CRT: More complex than you think
March 9, 2018Liz Beaulieu, Editor
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...
Buckle up, 2018 is going to be 'huge' for M&A, analysts say
January 19, 2018Theresa Flaherty, Managing Editor
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...
In difficult market, deals need to be more secure
October 24, 2017Theresa Flaherty, Managing Editor
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...