August is typically not a time to think about taxes but with possible hikes for 2013, you need to be doing a mid-year assessment of your business right now. In the current environment, almost all healthcare services businesses have four strategic options: Hold, Align, Grow or Sell. While each of these strategies has economic and tax consequences, it’s the “Sell” decision that may be critical in 2012. 15% vs. 23.8%: Which Do You Want to Pay? We are M&A Advisors not tax … [Read more...]
Private Equity Remains Bullish on the Rehabilitation Market
July 9, 2012 By Leave a Comment
Earlier this week Linden Capital Partners announced the sale of Hummelstown, PA-based Drayer Physical Therapy Institute to affiliates of GS Capital Partners. Why is that significant? “GS” stands for Goldman Sachs. Yes, the private equity arm of Goldman Sachs, one of the most prestigious private equity groups in the world, is now investing in the rehabilitation industry. Congratulations to Drayer Physical Therapy on this monumental deal! Why Does This Deal Matter? Over the last … [Read more...]
Synergies in Acquisitions
July 26, 2011 By Leave a Comment
Synergy in business can be defined as the cooperative action of two or more entities for purposes of increased cash flow beyond what each entity could accomplish by itself. When considering your mergers and acquisition strategy, don’t let wishful thinking get in the way; realizing synergies without negatively impacting the business can be difficult to achieve. Have a plan for identifying and then realizing true profit building synergies. Your primary objective in merging or acquiring … [Read more...]
The “High Five” for a Successful Sale of Your Rehabilitation Business
January 27, 2011 By Leave a Comment
This is a great time to examine your business in consideration of a potential sale or recapitalization. Acquisition activity in the rehab market has exploded nationally with deals totaling $236,890,000 in 2010, a 973% increase from 2009. Based on our discussions and survey of industry buyers, this trend will continue through 2011. In our experience, great businesses sell for great prices and structures. We have examined the dynamics of great companies, and overwhelmingly there are FIVE … [Read more...]
Rehab Mergers & Acquisitions: Is it Becoming a Seller’s Market?
August 9, 2010 By Leave a Comment
I just got off the phone with yet another buyer who is interested in rehabilitation business acquisitions-- this time in the south region. Acquisition strategy calls like this are coming to us on a weekly basis. Yet, when you talk to most business owners, the sentiment in most industries is that this is not a good time to sell your business due to poor economic conditions. They think that the real estate crisis, stock market drop and other factors are contributing to poor purchase multiples, … [Read more...]
Private Equity Trends Point to Opportunities for Rehabilitation Companies
July 2, 2010 By Leave a Comment
A private equity firm is one that will invest in your company, typically taking a majority interest, and then fuel your growth with additional capital and resources, providing you a “second exit.” Since late 2008, the capital markets have been tight, most companies’ sales have declined and valuations have reached historic lows. These three factors have combined to deal private equity firms an especially tough blow, which consequently has dampened overall merger & acquisition activity. … [Read more...]
