M & A News In The Healthcare Industry Sector

The report below provides a good overview of the fourth quarter M&A activity in the Healthcare Industry Sector. 

M&A activity for North American based target companies in the Healthcare sector for Q3 2017 included 183 closed deals, according to data published by industry data tracker FactSet.

National health expenditures are projected to grow at a rate of 5.6% on average per year according to the U.S. Office of Actuary. The country’s aging population is expected to contribute significantly to that spending growth.

Industry Indicators

• US consumer prices for medical care commodities, an indicator of healthcare costs, increased 2.4% in August 2017 compared to the same period in 2016.
• US consumer prices for medical care services, an indicator of profitability for healthcare services, rose 1.6% in August 2017 compared to the same month in 2016.
• Total US revenue for healthcare and social assistance rose 3.4% in the second quarter of 2017 compared to the previous year.

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Industry Update

The use of telemedicine in US health care networks is rapidly growing, but the extent of treatment varies widely due to differences in state coverage policies. Currently, 48 states and Washington, DC, include some form of live video reimbursement in their Medicaid fee-forservice models. While states are gradually expanding laws and program guidelines to cover more telehealth services, reimbursements are often restricted to certain types of care. Most states don't allow reimbursement for store-and-forward (data transmission) and remote patient monitoring services.

Only a few states allow telehealth to fulfill insurers' "network adequacy" standards – mandates on how many physicians and facilities must be included in a coverage network to ensure proper care, according to California Healthline. Regardless, health networks are steadily increasing use of telehealth tools to fulfill value-based care initiatives. For California health network Kaiser Permanente, a majority of patient interactions now occur through online portals, apps, or virtual visits.

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Transactional Overview

Notable closed lower middle market transactions for the period in Healthcare sector include:

September 2017 – Dynatronics Corp. acquired Bird & Cronin, Inc. for US$15.5 million in cash, convertible preferred stock and contingent payout. Under the terms of transaction, Dynatronics Corp would pay US$10 million in cash, US$4 million in convertible preferred stock, an earn out payment ranging from US$0.5 million to US$1.5 million. Dynatronics Corp. manufactures and distributes technology medical devices, treatment tables and rehabilitation equipment. Bird & Cronin manufactures and distributes orthopedic products.

June 2017 - Saol International Ltd acquired Venus Biotherapeutics Sub LLC, a subsidiary of Aptevo BioTherapeutics LLC, ultimately owned by Aptevo Therapeutics Inc, for US$74.5 million. Under the terms of transaction, Saol International Ltd would pay an upfront payment US$65 million and an additional US$7.5 million related to the achievement of certain gross profit milestones and may receive up to US$2 million related to collection of certain accounts receivable after closing. Saol International operates as an investment holding company. Venus Biotherapeutics provides therapeutic products.

July 2017 - Grifols Innovation & New Technologies Ltd, a subsidiary of Grifols SA, acquired a 44% minority stake in GigaGen Inc for US$35 million in cash. The acquisition would strengthen Grifols Innovation & New Technologies’ research and development portfolio. Grifols Innovation & New Technologies provides research and experimental development services in biotechnology sector. GigaGen offers single cell droplet technology to clinical researchers and physicians.

Source - CFA

Collectively, the  Alcor Mergers and Acquisition  provides M&A advice to public and private companies in all sectors of the healthcare industries, including healthcare information technology, medical devices, pharma, surgical equipment and supplies, biotechnology, assisted living and long term care.

About ALCOR Mergers and Acquisitions

Alcor M&A is a leading advisory firm providing financial services with an emphasis on customized solutions in the areas of M&A advisory, Joint Venture Advisory, Financial Advisory,  Private Equity, Debt Financing  and International Business Development. These services leverages insights, relationships and a culture that emphasizes a strong orientation towards excellence.

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ALCORs Growth Solutions for Business Helps Corporate Companies in the Areas of Investment Banking, M&A, Private Equity and Corporate Finance.

ALCOR provides a one-stop solution in Investment Banking with world-class corporations and companies as its clientele. ALCOR expertise spans the spectrum of finance - Mergers & Acquisitions, Equity Financing, Debt Financing, ECB, Financial restructuring, and investment banking advisory. ALCOR has footprints across the globe and an extensive presence in India with over 48 regional offices. ALCOR serves a wide cross section of verticals, some of which are the following: Automotive, Power, Telecom, Electronics, Software, Real Estate, and Education.

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True to its global stature as a leader, ALCOR's business philosophy is driven by highest levels of integrity and honesty at the heart of business. ALCOR obeys and complies with the rules of the land . ALCOR’s erudite Directors are from Harvard, Oxford and other prestigious institutions. The execution Team comprises of internationally reputed and highly experienced finance personnel.

ALCOR leverages its strong global footprint and the value of its international board of advisors to provide its clients with high growth transactions across the globe. We use our international deal-making experience to deliver customized advice to clients on each transaction. We assist clients in evaluating international and domestic Acquisitions and Joint Ventures. Global Fortune 500 companies work with ALCOR to assess suitable targets across the globe for market entry or market share expansion. ALCOR solutions include Mergers & Acquisitions, sell side, & buy side advisory, leveraged buyouts & other types of corporate restructuring. Standing aloft with over a 100 man-years in cross-border M&A advisory & independent research & experience, ALCOR, delivers maximum value from their transactions. ALCOR understands the clients' unique business needs, keeping their objectives a top priority. We work with our clients closely, often over five years, to help the client realize the value of their value creation strategy. ALCOR's wide range of product offerings are tailor made to suit client growth requirements.

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ALCOR worldwide team allows for targeted search, scenario mapping, synergy realization, and detailed road map with experience-driven cross-border M&A advisory that can be customized with minority buy-in, acquisitions, or even a 50:50 joint venture.

ALCOR uses strategic tools such as the Balanced Scorecard with tailored precision to define the following -

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About ALCOR Mergers and Acquisitions

Alcor M&A is a leading advisory firm providing financial services with an emphasis on customized solutions in the areas of M&A advisory, Joint Venture Advisory, Financial Advisory,  Private Equity, Debt Financing  and International Business Development. These services leverages insights, relationships and a culture that emphasizes a strong orientation towards excellence.

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Corporate Finance

How Combining  deep financial expertise  helps  the CFO/CEO  maximize value.

The role and responsibilities of the CFO have evolved dramatically. Once limited to the finance function, the CFO is now, more than ever before, a strategic partner accountable for creating value across the entire business. We have the expertise to support CFOs as they transform the finance organization, shape portfolio strategies, undertake major investment and financing decisions, and communicate with investors.

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The CFO challenge

Boards view CFOs as the most important corporate executive after the CEO. But in today's business environment, CFOs face new challenges. Corporate performance is increasingly tightly managed. Risks, including cyber issues, are growing. People within the business have higher expectations, especially when it comes to data and advanced analytics and the impact on value creation from disruptive business models. And it can be a struggle to deliver the best service in finance at minimum cost.

Our deep understanding of the finance function and expertise in specific industries uniquely positions us to support the CFO .

CFOs play a crucial role in aligning stakeholders so everyone sees value creation through the same lens. As the CFO is also at the helm of value-creation efforts company-wide, he or she can use the finance function to test new ideas and set best practices.

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We support our clients in several areas:

:: Investment Banking  ::  Corporate Finance  :: Mergers and Acquisition Advisory

::  Joint Venture Advisory  ::  Private Equity  ::  Debt Financing

About ALCOR Mergers and Acquisitions

Alcor M&A is a leading advisory firm providing financial services with an emphasis on customized solutions in the areas of M&A advisory, Joint Venture Advisory, Financial Advisory,  Private Equity, Debt Financing  and International Business Development. These services leverages insights, relationships and a culture that emphasizes a strong orientation towards excellence.

For additional information on how ALCOR MNA can help you Grow your Company, Complete the Enquiry form One of our representatives will contact you within one business day.

www.alcormna.com