Tag: The Braff Group

I caught up with Brad Smith, managing director and partner at Vertess, recently and he said the mergers and acquisition market for HME has been “a wild rollercoaster ride” amid the coronavirus pandemic. First, investors and buyers charged ahead, then they paused and then they stopped, he says. But by the end of April, Smith had a handful of deals scheduled to close in May. Investors and buyers were charging ahead again, with the pandemic as “the new normal.” “They like...

“We believe we're on the cusp of another 2012,” said Dexter Braff during a webcast today on the M&A outlook for HME. What happened in 2012? The number of HME deals jumped to 107, up from 71 in 2011 and 59 in 2010. The number of private equity deals also jumped, to 10, up from four in 2011 and 2010. 2012 was also one year after CMS kicked off its competitive bidding program in the country's largest cities. Putting two and two together: Investors thought, after the first round of bidding,...

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...

The print issues of HME News are on their way to your mailboxes (if not already there), but I wanted to call your attention to page 22. Here you will find, as you do every month, The Braff Group M&A Insider. This graph and accompanying analysis are always interesting, but I found this most recent graph and accompany analysis of particular interest. Screen Shot 2018-01-04 at 8.19.50 PM.png The two key takeaways from the The Braff Group's latest contribution: 1.) M&A activity for the HME industry...

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,...

YARMOUTH, Maine - The pace of acquisitions slowed down a bit in 2016, but overall it was a decent year for buyers, say analysts.“The big deals have stalled out a bit, but you have a lot of people that are shopping and acquiring the small patient add-on deals,” said Brad Smith, managing partner at Vertess, a Tucson, Ariz.-based M&A advisory firm. “If you have $10 million to spend, you could get one really nice company or you could buy a whole ton of patient lists, which have more...

LOUISVILLE, Ky. - Amerita, a subsidiary of PharMerica, a national provider of institutional and specialty pharmacy services, has acquired Alternacare Infusion Pharmacy, an Olathe, Kan.-based specialty home infusion provider. PharMerica also announced that it has completed its acquisition of Integrated Pharmacy Network, a Midland, Mich.-based long-term care pharmacy. With these deals, PharMerica has achieved its goal of completing acquisitions that generate at least $100 million of annualized sales,...

SAN JOSE, Calif. - A&D Company has entered into a definitive agreement to buy the necessary business assets of Toronto-based Auto Control Medical. The deal allows A&D to expand its product range and application experience across the Americas. A&D provides a full line of advanced biometric monitoring solutions, including blood pressure monitors, weight scales, activity monitors and other health monitoring devices for consumer and professional use. Auto Control Medical distributes hypertension, diabetes...

A. In mergers and acquisitions, many deals don't actually close for a variety of reasons. In a sector badly in need of a PR makeover, the three most common reasons that turn a close into a chorus of “no's” are perceived shortfalls in compliance, compliance and compliance.The key word here is perceived.  With more than fifty shades of grey when it comes to following billing guidelines accurately, one party's standard of compliance may not match another's. If the buyer subscribes to...

A. The primary theoretical components are definitely in play—income, growth, and risk. The lower the go-forward risk and the greater the go-forward growth opportunity, the greater the multiple of income a buyer is likely to offer a provider.Simple. Until you consider that buyers rarely (i.e. never) actually rigorously quantify these factors. Rather, in practice, they're used to anecdotally informed company specific variations on industry rules of thumb. Then the pixie dust comes into play:...