Tag: Don Davis
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,...
M&A: What will be impact of bid changes?
September 7, 2018Theresa Flaherty, Managing Editor
YARMOUTH, Maine - It's still early, but CMS's proposed changes to the competitive bidding program could renew M&A activity, analysts say.
In the short term, the agency wants to implement an any willing provider provision when the current bid contracts expire, allowing any Medicare-enrolled provider to serve beneficiaries while it overhauls the program.
“Now that you don't have these handcuffs on, you can go out and grow organically or through acquisitions,” said Brad...
M&A: Buyer appetite for HME improves
April 21, 2017Theresa Flaherty, Managing Editor
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...
BritKare makes first buy
June 19, 2015Tracy Orzel
AMARILLO, Texas - BritKare Home Medical took its first dip in the M&A pool in early May when it acquired Lubbock, Texas-based Pillar Equipment Services.“This is our first (acquisition),” said Josh Britten, president of BritKare. “We're retaining the location, the employees—the only thing that's really changing is the name.”Founded in 1995, the family-owned DME provider has locations in Amarillo and Pampa, Texas, and offers orthotics and pediatric supplies, as well as...
M&A: Are supplies a sleeper category?
December 23, 2014Theresa Flaherty, Managing Editor
When Liberty Medical drew 33 bidders to a sale of its assets in November, no one was more surprised than industry analysts.“I didn't realize there were that many folks capable of coming up with bids for that business,” said Don Davis, president of Duckridge Advisors.But does the interest in Liberty signal that the mail-order supplies category is going to be the next big thing for buyers in the HME space?That depends who you ask.“Absolutely. The urological space is among the most...
Rotech ready to expand
December 19, 2014Theresa Flaherty, Managing Editor
ORLANDO, Fla. - Rotech Healthcare last week announced its first acquisition in several years and the company has indicated that's only the beginning.
“Rotech is looking to leverage its platform to expand its presence in existing and new markets,” said CEO Tim Pigg in a release. “Unlike many of our smaller distressed competitors, we have the staying power to ride the current market difficulties and capital available to invest in our core products.”
Rotech acquired...
Merger casts 'positive' light on industry
October 17, 2014Theresa Flaherty, Managing Editor
ORLANDO - News of a merger between AeroCare and MergeWorthRx put a spring into the step of HME industry analysts.“This a positive sign for the industry,” said Rick Glass, president of Steven Richards & Associates.In the Oct. 15 announcement, AeroCare, which has been backed by private equity firm Ferrer Freeman & Company since its inception in 2002, and MergeWorthRx, a special purpose acquisition company with a healthcare focus, said they have agreed to an all-stock merger. MergeWorthRx...
Audit uncertainty drags on deals
April 11, 2014Theresa Flaherty, Managing Editor
YARMOUTH, Maine - It was a slow first quarter for mergers and acquisitions, say industry analysts.“It's been disappointing so far,” said Rick Glass, president of Steven Richards & Associates. “I had anticipated a pickup in acquisitions with most of the uncertainty around Round 2 bid pricing going away.”But it appears competitive bidding has been replaced by another concern: audits.“Audits are a drag on the whole system,” said Glass. “It's hard to get buyers...
It's still a buyer's market, analysts say
January 10, 2014Theresa Flaherty, Managing Editor
YARMOUTH, Maine - Competitive bidding drove acquisition activity in 2013 and analysts say it will power decisions in the year ahead.
“It's all about the contracts and who wants what and when,” said Don Davis, president of Duckridge Advisors. “I really anticipate a year of consolidation with corporate entities buying family entities.”
That means, while the big get bigger, the industry is rapidly shedding mom-and-pops, say analysts.
Contract holders fare slightly...