Previously passed along my photos and takeaways from #HCPE2024, but glad to see Rebecca Springer, PhD (PitchBook) take too. https://lnkd.in/gzf8PEFH • #healthcare #manda deal environment more active than a year ago, but stop-start too. • Federal Reserve Board’s rate-cutting cycle likely to be the impetus for a serious resumption in deal activity. • #financing environment becoming slightly more buyer friendly, especially in the upper half of the market. • #antitrust environment frequently mentioned. • #PPM less interest than past few years. • #Physician #compensation more challenging with some erosion on “second bite.” • Standing-room-only #medspa session. Consumer-driven wellness plays might follow. • #pharma services session: expect frothy valuations here in 2024. Thanks Rebecca for the coverage of McGuireWoods LLP McGuireWoods Consulting annual event.
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PitchBook's McGuireWoods LLP HCPE conference recap is out. Read the full report here: https://lnkd.in/g5eYAHXu >> More market activity is not yet translating into deal announcements. Processes are still long and halting. While the market is still waiting for the Fed to start cutting rates, sellers may bite the bullet and take a lower multiple if we continue to get "higher for longer" signals. >> As the BSL market reopens, the financing environment is becoming slightly more buyer friendly, especially in the upper half of the market. Dual processes are becoming more common. EBITDA and interest coverage remain the key areas of lender scrutiny. >> The antitrust environment is taking up a lot of mind share. >> PPMs have fallen so severely out of fashion that the current period was compared to the 1990s—an overstatement, but indicative of the market’s sentiment. >> Physician compensation is becoming even more challenging than usual as elongated holding times and margin compression erode the value of the “second bite.” >> Medspa is still hot, and we expect forward-thinking firms to increasingly integrate medspa with other women's health and wellness components such as concierge, HRT, weight loss >> Pharma services, especially trial sites, looks very competitive for this year
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Eveline Van Keymeulen, Global Vice Chair of Latham’s Healthcare & Life Sciences Practice and Industry Group, shares that upcoming regulatory and policy changes are top of mind for investors and companies on both sides of the Atlantic at the J.P. Morgan Healthcare Conference. https://lw.link/cJ7x86 #jpm2025
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