M&A: Healthcare Indications Review

Posted on March 11, 2024 by Dr. David Edward Marcinko MBA MEd CMP™

Indications for 2024

By Health Capital Consultants, LLC

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After healthcare mergers and acquisitions (M&A) activity began to regain momentum in 2022, following the slowing of deals in the wake of the COVID-19 pandemic, transactional activity continued to accelerate in 2023. While the healthcare sector continued to be impacted by factors such as valuation gaps, higher-for-longer interest rates, general macroeconomic risks, and increased state and federal regulatory concerns in 2023, the outlook for 2024 remains cautiously optimistic.

CITE: https://www.r2library.com/Resource

This Health Capital Topics article reviews the U.S. healthcare industry’s 2023 M&A activity and discusses what these trends may mean for 2024. (Read more…)

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DAILY UPDATE: Corporate M&A Activity Increasing as Stock Markets End Mixed

Posted on February 28, 2024 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Merger and Acquisition (M&A) activity was down in 2023, but McKinsey says we should keep our chins up based on the strong final months of the year and economic optimism among professionals. For example, Global M&A activity last year totaled $3.1 trillion, dropping 16% from 2022, McKinsey found in a new report by senior partners Jake Henry and Mieke Van Oostende. But, the value of M&A activity in the fourth quarter increased 41% over Q3 and 37% year over year.

CITE: https://www.r2library.com/Resource

Stocks were mixed yesterday, with the S&P 500 and NASDAQ inching up and the Dow Jones dropping ahead of the release of key inflation data later this week. Viking Therapeutics, whose stock more than doubled after it reported positive results for its weight-loss drug trial in a bid to break into a sector dominated by Eli Lilly and Novo Nordisk.

Here’s where the major stock market benchmarks ended:

  • The S&P 500® index (SPX) rose 8.65 points (0.2%) to 5,078.18; the Dow Jones Industrial Average® (DJI) fell 96.82 points (0.3%) to 38,972.41; the NASDAQ Composite® (COMP) gained 59.05 points (0.4%) to 16,035.30.
  • The 10-year Treasury note yield (TNX) rose about 1 basis point to 4.309%.
  • The CBOE Volatility Index® (VIX) dropped 0.31 to 13.43.

Retailer strength helped lift the S&P Retail Select Industry Index (SPSIRE) 2.4% to its highest level in 22 months. Utility shares were also strong as the sector rebounded from the previous day’s slump. The small-cap Russell 2000® (RUT) jumped 1.3% to extend a nearly week-long rally and posted its second-highest close of the year.

In other markets, WTI crude oil (/CL) futures surged 1.4% and settled just under $79 per barrel, the market’s highest close since early November. Strength in oil reflects concern over conflict in the Middle East and expectations OPEC may extend production cuts beyond the first few months of 2024.

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M&As and ESG = PROFIT?

Posted on September 23, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

SPONSOR

http://www.MARCINKOASSOCIATES.com

By Staff Reporters

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Companies’ ESG efforts can prove profitable when it comes to M&As, according to a recent KPMG US ESG survey, which showed that 41% of business leaders see ESG as a major source of financial value during M&As.

ESG: https://medicalexecutivepost.com/2023/03/27/on-socially-responsible-investing-2/

The survey polled 201 business leaders with ESG responsibilities at companies with more than $1 billion in revenue. Respondents were asked to rate how much value ESG brought them in different areas on a seven-point scale. KPMG interpreted scores of six or seven as indicative of major financial value.

Maybe Not: https://medicalexecutivepost.com/2023/07/18/esg-investing-reversal-of-fortune/

The findings are in line with KPMG’s recent ESG Due Diligence Survey, which found that ESG weaknesses can spell trouble during M&As. In that survey, 53% of corporate investors said they had canceled business deals because of ESG weaknesses uncovered during due diligence. A recent BDO survey likewise found that more than 80% of private equity fund managers have walked away from a deal due to ESG concerns.

VENTURE CAPITAL: https://marcinkoassociates.com/fmv-appraisals/

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RELATED TEXTBOOKS

DOCTORS:

“Insurance & Risk Management Strategies for Doctors” https://tinyurl.com/ydx9kd93

“Fiduciary Financial Planning for Physicians” https://tinyurl.com/y7f5pnox

“Business of Medical Practice 2.0” https://tinyurl.com/yb3x6wr8

HOSPITALS:

“Financial Management Strategies for Hospitals” https://tinyurl.com/yagu567d

“Operational Strategies for Clinics and Hospitals” https://tinyurl.com/y9avbrq5

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HEALTHCARE MERGERS & ACQUISITIONS: 2021 in Review

Posted on June 19, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Healthcare Partnerships – 5 Takeaways

 •  This year had the largest percentage of announced “mega merger” transactions in the last six years at 16.3% and, in more than one out of every 10 transactions, the smaller partner had a credit rating of A- or higher in 2021.
 •  Since 2011, average smaller partner size by annual revenue has increased at a compound annual growth rate (CAGR) of approximately 8.0%.
 •  Transactions involving a not-for-profit partner represented 87% of announced transactions.
 •  Transactions involving rural or urban/rural sellers increased to 31% of announced transactions.

Source: KaufmanHall, January 10, 2022

CITE: https://www.r2library.com/Resource/Title/082610254

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