Intrepid’s Healthcare Group recently co-chaired a healthcare M&A Webinar with accounting firm RSM which highlighted best practices in preparing a healthcare business for a transaction. Panelists discussed perspectives from both sides of the table: the Head of M&A for one of largest and most acquisitive physician services organizations in the country (Ernest Varvoutis from Team Health) and a C-suite executive for a laboratory services business in one of today’s most exciting new areas of consolidation (Robert Chilton from Ovation Fertility).

Key Takeaways from the Webinar

Get Your Financial House in Order

It is never too early to start preparing, either by developing a system for reporting monthly financial statements, assembling a data room, or obtaining a quality of earnings report, all of which are vital factors in streamlining a diligence process.

Prepare the “Right” Financials

Investors and acquirers want to see GAAP, accrual-based financials. Also, with so many complexities in the healthcare revenue cycle, it is important that you can articulate the impact of reimbursement rate changes and the predictability of any payer irregularities, such as recoupments.

Compliance Is Key

Ensure that experienced healthcare legal counsel has vetted your activities and legal structure. Inappropriate or aggressive tactics will likely be identified in diligence, normalized in a buyer’s review, and potentially blow up a deal.

Invest in Scalable Infrastructure

Regardless of a company’s quality or outcomes, much of the value in a healthcare business lies in the managed services organization that handles its billing, collections, compliance, contracting, HR and other key back-office functions. Healthcare service providers lacking in this area will find difficulty attracting a premium multiple.

It Takes a Village

Don’t try to go at it alone. Hire strong healthcare-focused accountants, legal advisors and M&A advisors to best position you for a successful outcome.

A recording of the Webinar and presentation slides are available for complementary download. For those that would like to learn more, please don’t hesitate to reach out.

*We have provided you with this link for your convenience. Intrepid is not responsible for the content, links, privacy policy, or security policy of the RSM website.

Join Us in Irvine for a Panel Discussion on Healthcare M&A Trends, Challenges, and Opportunities

Intrepid’s Co-Head of Healthcare, Jonathan Bluth is speaking at the upcoming ACG SoCal Capital Summit. Join Jonathan and other industry leaders on November 21st for a panel discussion on “M&A Healthcare Trends, Challenges, and Opportunities,” where they will examine trends, challenges and opportunities in healthcare M&A.

Event Details

Thursday, November 21, 2019

Proud Sponsor of the 2019 ACG LA Business Conference

Intrepid is proud to announce that for the 19th year in a row, we are a sponsor of the nation’s premier deal flow and business conference. Featured speakers this year include: James Comey, Former Director of the FBI; Howard Marks, Co-Chairman of Oaktree Capital Management; Danica Patrick, Race Car Driver; and Ron Williams, Former CEO of Aetna.

Our team is hosting two sessions: “Capital Chases Innovation in Any Part of the Cycle” moderated by Jonathan Zucker, Managing Director and Head of the Capital Markets Group and Adam Abramowitz, Managing Director and Co-Head of Healthcare will moderate a Q&A session with keynote speaker Ron Williams, Former CEO of Aetna.

Sept. 18th – Beverly Hilton Hotel

11:00  – 11:45 AM |  Wilshire Ballroom

Capital Chases Innovation in Any Part of the Cycle

Sitting on record amounts of liquidity yet sensitive to increased market volatility, institutional capital providers continue to seek out innovative companies as the best store of value ahead of a potential market correction. Discover how CEOs are using technology to disrupt their respective industries and tap the private debt market as a stepping stone to value-creating transactions. Hear from highly active middle-market credit funds about how they support visionary entrepreneurs on their path to growth, acquisitions, and liquidity events.

3:00 – 4:00 PM – Keynote Speaker – Ron Williams, Former CEO, Aetna  | International Ballroom

We invite you to stop by our booth and meet the team. To schedule a one-on-one meeting with any of our bankers, contact Beau Sipiora at bsipiora@intrepidib.com or 310.478.9000.

Gary Rabishaw, Managing Director

Managing Director Gary Rabishaw is a featured speaker at the upcoming Investment Banking Trends panel hosted by ACG Los Angeles at The Montage Beverly Hills. Join us as Gary and other bankers discuss their perspective on recent M&A trends, hot sectors, important terms in purchase agreements and insights into the process.

• How are buyers differentiating themselves?
• How do you maintain confidentiality in a process?
• Do fireside chats really work?
• Advice you give clients going into management presentations.
• Do preemptive bids make sense?

Wednesday, July 24, 2019

Gary Rabishaw, Head of Commercial & Consumer Technology

Innovation, new opportunities, and rapid growth are a top priority in today’s technology world. Technology and digital media companies continue to transform and inspire our local and global economies. The future of this expansive market of everything from big to smaller players across AI/ML, self-driving technologies, SaaS, the Internet of Things, information services and more, is full of opportunity and excitement for investors, but with that comes risk. Technology changes quickly and to be successful, it is essential to anticipate opportunities and have the ability to respond at a rapid pace.

Christopher Park, Head of Software & Services

Intrepid’s Technology & Digital Media Group recently hosted a half-day event on “Investing in Technology” at the Oaklins Los Angeles Conference that discussed emerging trends in technology investing, such as valuation trends, competition, the keys to picking winners, and how to stay disciplined in a robust market.

Gary Rabishaw, the Head of Intrepid’s Commercial & Consumer Technology practice opened the event that featured Brenon Daly of 451 Research, who shared his insight into the current M&A market. Christopher Park, the Head of Intrepid’s Software & Services practice moderated a panel that included Dan Groen, Managing Director at Clearlake Capital Group; Jeff Haywood, Managing Director at Spectrum Equity, and Eunji Chung, Vice President at Summit Partners.

Key discussion topics included understanding the landscape for technology M&A and investing in the U.S. and overseas, the state of the market—a look at opportunities across broad technology sectors, as well as investment themes, valuation trends and drivers.

Intrepid is the Los Angeles-based member of Oaklins, a global middle-market investment banking organization comprising 60 offices in 40 countries and more than 800 M&A professionals. Oaklins is ranked No. 1 in Mergermarket’s 2018 Global league tables for transactions from $5 million to $250 million. The event was attended by M&A bankers from all over the world and deal professionals and featured companies from the local LA tech M&A community.

We are in the midst of an unprecedented wave of healthcare mergers and acquisitions (M&A) activity.

Please join us on Tuesday, December 4th for a webinar co-hosted by Intrepid and RSM, the discussion titled: “Perspectives from Both Sides of the Table: Preparing Your Business for A Transaction.” The session will discuss best practices that business owners should pursue to prepare them for a possible future M&A event. They will share lessons learned from both buyers and sellers and recommend steps business owners can take today to reduce risk and maximize value.

The session will feature corporate, transactional and accounting leaders which include: Ernie Varvoutis, Executive Vice President M&A, at Team Health, Robert Chilton, Chief Operating Officer, at Ovation Fertility, Christopher Brown, Director, Healthcare M&A, at RSM, Jonathan Bluth, Senior Vice President, Head of the Healthcare Group at Intrepid, and Adam Abramowitz, Managing Director, at Intrepid.

Webinar Details
Tuesday, Dec. 4, 2018
1 p.m. EST | Noon CST
60 minutes

To register for the event, click here.

Intrepid’s Head of Healthcare, Jonathan Bluth is speaking at the upcoming ACG 2018 SoCal Capital Summit. Join Jonathan and other industry leaders on November 14 for a panel discussion on “M&A Healthcare Trends, Challenges, and Opportunities,” where they will examine trends, challenges and opportunities in healthcare M&A.

Jonathan Bluth, Intrepid’s Head of Healthcare.

Event Details

Wednesday, November 14, 2018 4:30 PM – 8:30 PM PST
4:30 PM – 5:30 PM – Networking and hors d’oeuvres

5:30 PM – 6:30 PM – Breakout Sessions:
– Healthcare
– Food & Beverage
– Aerospace & Defense

6:30 PM – 7:30 PM – Keynote Presentation – Jeff Bush, The Washington Update
7:30 PM – Dessert and networking

Marriott Irvine
18000 Von Karman Avenue
Irvine, CA 92612
United States

M&A continues to be a driver of change and innovation in the dynamic healthcare sector for both strategic acquirers looking to accelerate growth and private equity sponsors looking for their next great investment.

Intrepid’s Healthcare Group led a dynamic panel discussion at the recent ACGLA Business Conference with senior private equity leaders and corporate executives regarding the opportunities and pitfalls in healthcare M&A today. Adam Abramowitz, Managing Director, introduced the panel and touched on the current healthcare environment while Jonathan Bluth, Intrepid’s Head of Healthcare, moderated the session. Here are some highlights from the dealmakers and where they might find the next wave of opportunity.

Implementing Value-Based Care in the Middle Market

More and more provider groups are transitioning from fee-for-service to value-based care, which represents a challenging development for middle-market investors to incorporate into their modeling and valuations. It may not be the ideal strategy for all private equity sponsors to underwrite such a revenue model change into a valuation case without serious conviction of a successful transition. Migrating to value-based care necessitates robust financial reporting, sophisticated operations, and sufficient technology infrastructure to ensure successful, win-win outcomes. However, to maximize their valuation and options, panelists felt that all providers should develop a strategy on how to address value-based care in their sectors, regardless if it remains a small part of their business models today.

Innovation Can Provide Many Answers

Panelists expressed excitement to invest in and or acquire companies harnessing innovation within healthcare that is driving patient/consumer engagement, improving care management and enhancing outcomes. These innovations can increase efficiencies and reduce costs thereby creating attractive value propositions and M&A rationales. Further, new patient engagement technologies can improve data capture for outcomes analysis as well in niche areas like clinical trial recruitment. Despite their excitement, some panelists remained hesitant about pushing the innovation envelope too far and believed “tried and true” care models with proven track records of quality care will remain high on buyers’ wish lists.

Models That Address Healthcare Spend Will Win

American healthcare spending is broken. Investors and acquirers alike are highly interested in proven and emerging care models that can significantly reduce spending while offering great patient experiences and high clinical care. Panelists discussed the importance of addressing all key stakeholders in the system and how a winning healthcare business provides value to payors, patients and providers. Solve for the “3Ps,” and you will be at the top of everyone’s wish lists.

Continued Shift Towards Quality

In this active and competitive M&A market, panelists discussed how lofty valuations are pushing them to focus on only the best assets, both operationally and clinically. To justify the premium valuations necessary to win deals, acquirers want comfort when they are partnering with top-tier companies with strong management teams, high-quality operations, and clear pathways for near- and long-term growth.  But, they also shared that buyers are placing increased scrutiny on outcomes and quality of care. Diligence processes have dramatically increased scrutiny and companies that don’t “check the boxes” may not garner premium valuations and a multitude of transaction options. Preparation is vital—so potential sellers should strongly consider completing a sell-side ‘Quality of Earnings Report’ and, in some cases, a coding audit before launching an M&A process.

Panelists

• Jonathan Gluck, COO and General Counsel, Heritage Provider Network
• Anil Asnani, Senior VP of Corporate Development, LabCorp
• David Alpern, Founding Partner, Varsity Healthcare Partners
• Scott Kauffman, Principal, Northlane Capital Partners

Event Details

Wednesday, Sept. 26, 2018

ACGLA Business Conference

Beverly Hilton

9876 Wilshire Blvd.

Beverly Hills, CA 90210