2024: A Return to Confidence

Mergers and acquisitions (M&A) happen when dealmakers possess not only cash but confidence. In 2024, that's the transformative combination we expect to see.

Benchmark International is pleased to announce the acquisition of County Kildare-based Labplan by Swedish-based ADDvise.

Benchmark International is pleased to announce the acquisition of Essex-based Clearview by London-based Foresight, a transaction announced as Insider Media’s Deal of the Month in November.

After a very active year in 2021 and a reasonably robust market in 2022, M&A deal-making in the healthcare sector will soar in 2023 thanks to much corporate cash and private equity sitting on plenty of dry powder. Healthcare and health services companies are expected to actively explore M&A, divestitures, and other types of transactions, making it an attractive marketplace for parties.

How do Economic Conditions affect the Lower Middle Market? 

The lower middle market is typically defined as companies with an enterprise value (EV) between $5 million and $100 million. A range of factors, including economic conditions, interest rates, and availability of financing, influences M&A activity in this market segment. In recent years, lower middle market M&A has been driven by several factors, including a strong economy, low-interest rates, and the availability of financing. Here are a few ways that current economic conditions can affect M&A activity in these key industries:

Benchmark International is pleased to announce the acquisition of St Albans-based Back in Action UK by Leeds-based Sano Physiotherapy.

Back in Action UK is an occupational physiotherapy company that was established in 2001. It provides assessment, treatment, and ergonomic consultancy to private sector corporates nationwide.

Founded in 2010, Sano Physiotherapy, backed by Solingen Private Equity, provides specialised onsite occupational health physiotherapy services and ergonomic assessments to some of the UK's largest brands.

It also provides NHS and private sector services and delivers numerous public-sector physiotherapy contracts throughout the UK, including local authorities and police, fire and ambulance services.

The acquisition of Back in Action UK has doubled the size of Sano's occupational health physiotherapy services, expanding its expertise into new industries such as rail, travel and utilities.

The enlarged Sano group now employs more than 100 full-time staff across its customer locations and operates nationally.

Benchmark International has successfully facilitated a transaction between Atlanta-based WeCareMD, P.C. (“WeCareMD”) and Tampa-based Physician Partners, LLC.

Benchmark International successfully facilitated the transaction of Seasons Home Health, which consists of a group of four entities. The entities provide personal home care to children, elderly, or disabled patients in Southern Texas. Located in the Rio Grande Valley, Seasons Home Health helps individuals in need of personal home care to live securely and comfortably in their own homes.

Benchmark International has successfully facilitated a transaction between Florida-based Paramount Urgent Care, Inc. (“Paramount”) and HCA Healthcare, headquartered in Nashville, TN. Paramount operates six urgent care clinics in Central Florida, with locations in Clermont, The Villages, Oviedo, Orlando, Casselberry, and Windemere Villages. 

Metaphase Design Group, Inc. is a leader in applying the science of human factors engineering and ergonomics to product design. Metaphase incorporates various areas of specialization in their User-Centered Design Innovation Process, combining them with extensive expertise in Industrial Design and Human Factors research and support.

Benchmark International has advised on the transaction of Irish headquartered O’Flynn Medical and O’Flynn Innovation, to Healthcare 21. O’Flynn will become part of the Healthcare 21 Group, which AddLife acquired in 2021.

Established in 2000, O’Flynn Medical is a leading provider of medical equipment and PPE to Ireland’s care home and domestic markets offering the sale, rental, and associated services and maintenance for a range of specialised products.

O’Flynn Innovation was later established in 2011 for the distribution of automated garment dispensing control systems. Together, the group has become a trusted distributor of medical equipment to the care home and domestic markets.

Established in 2003, Healthcare 21 is an independent medical device distributor offering sales, marketing and technical solutions for many of the world’s leading healthcare equipment manufacturers. The group has an annual revenue exceeding €159 million and more than 450 employees across four European countries.

The acquisition provides Healthcare 21 with the opportunity to expand its portfolio into the rental market segment, to become the leading provider in Ireland. The acquisition also provides entry for Healthcare 21 into the bariatric market segment.

O’Flynn Medical will continue to trade under its existing name and remain headquartered in Macroom, Cork.

Benchmark International successfully facilitated the transaction of a private duty home healthcare company, providing services for elderly client patients, and hospice firms. The company also provides hospice staff placement to third-party hospice and healthcare providers.

The seller, Poly Pharmaceuitcals, Inc., is a development and distribution company focusing on generic and OTC pharmaceutical products such as cold, cough, allergy, and pain relief. Over the years, they have developed a portfolio of innovative, safe, and cost-effective medications for patients and caregivers. CEO, Chase Williams, had this to say: “Poly Pharmaceuticals would like to thank Benchmark International and, in particular, Tyler Gonska and Matthew Kekelis for their professional nature in which they vetted potential buyers and facilitated the acquisition of Poly Pharmaceuticals, Inc. to ADDvise Group US, Inc.”

Perfusion.com (PDC) is the leading provider of staffing services to the U.S. perfusion industry. The company’s core perfusion staffing services include autotransfusion, blood management and biologics services, the sale of disposables, capital equipment leasing, training and education services and patient transportation. The company is headquartered in Fort Myers, Florida.

Benchmark International facilitated the Transaction between North Country Family Practice, P.A., located in Southlake, a suburb of the Dallas-Fort Worth, Texas market, and an undisclosed buyer.

Benchmark International is pleased to announce the transaction between Just For You Personal Support Services (“JFYPSS”) and AccordCare, Inc. (“AccordCare”).

JFYPSS is a College Park, Georgia-based home care company that provides personal care, skilled nursing, respite care, and companionship services. Established in 1996 with the goal to provide personal care services allowing disabled and elderly persons the opportunity to achieve and maintain optimal levels of independence in the community. JFYPSS is AccordCare’s fifth transaction in 18 months.

AccordCare is a premier in-home personal care company providing services to people of all ages and levels of need. More than just personal care, it is specialized care custom-designed to meet a patient’s specific needs. They provide full-service private duty home care that is customized to patient’s needs, allowing them to stay in their home where they can feel the most comfortable. The company is based in Marietta, Georgia, and serves more than 1,300 clients daily.

Brandon Ballew, CEO of AccordCare, said in a press release, “Just for You has a great reputation and a commitment to providing excellent care to clients and driving an employee-first culture; it made them a natural fit for AccordCare.”

Senior Transaction Associate Sunny Yang Garten at Benchmark International added, “This acquisition represents a tremendous opportunity for both businesses and their teams. It was a pleasure to represent JFYPSS in this transaction. On behalf of Benchmark International, we wish both companies continued success.”

Benchmark International is pleased to announce the transaction between ARC Medical, Inc. based out of Tucker, GA and Typenex Medical out of Chicago, IL.

ARC Medical offers circuit filters for the anesthesia market and humidification for the respiratory, long-term acute care, and home care markets in the United States. Best known for its circuitGuard, ThermoFlo, and FilterFlo products, ARC Medical was founded in 1990 by Harold Norris.

Regarding the transaction, Mr. Norris stated, “The ARC Medical team is very excited about the future of circuitGuard, ThermoFlo, and FilterFlo. The Typenex partnership presents great opportunities for both companies, as well as the customers we serve.”

Acquirer Typenex Medical is a national provider of medical solutions to the healthcare industry. The company was founded in 2004 and has grown from a single product (Original Typenex Blood Band) company into a diversified firm offering an array of solutions across the healthcare industry.

The acquisition is backed by a private investment company, Chicago Venture Partners. Since 1998, the group and its affiliated entities have invested in over 200 portfolio companies.

Benchmark International's Senior Associate Jason Donker commented, “The combination of ARC’s unique product suite and Typenex’s vast reach and marketing capabilities will be truly powerful, and will hugely benefit both parties. It is always exciting to make such a highly synergistic marriage, and we are looking very forward to watching the combination grow moving forward.”

Benchmark International is pleased to announce the acquisition of Richmond, Virginia-based Harryco LLC by Silverbridge Capital.

Harryco is a mental health organization that provides a variety of personal, group counseling, and mental health services to children, adolescents, adults, and their families. Harryco was founded in 2009 by Dr. Harold Watkins as a small mental health organization offering intensive in-home counseling services to children and adolescents. The company has since grown operations to four cities and counties in Virginia and now provides a full range of community support services to a wide set of patients.

Silverbridge is a New Jersey-based private equity firm with investments in mental health and other patient-centered healthcare organizations.

Harryco’s partnership with Silverbridge represents a key next step in the company’s mission to provide best-in-class mental health services to an expanding base of patients. Community leader and Harryco founder, Dr. Harold Watkins, will stay on with the company to continue guiding Harryco during this next phase of growth.

On the acquisition, Dr. Watkins stated, “the Benchmark International team was fantastic throughout this entire process. They did an amazing job as an advocate for me and my company. I would absolutely recommend Benchmark International to anyone in healthcare services considering a sale process.”

Benchmark International Transaction Director William Sullivan commented: “Dr. Watkins is an impressive individual who has built a great organization that serves its communities well. Our team was dedicated to getting a great outcome for him individually and one that would enable his business to partner for continued growth. It was a pleasure working with Dr. Watkins and his team, and we wish him every success moving forward.”

On April 30th, 2021, Benchmark International facilitated the sale of CPR Plus, LLC (serving the Greater St. Louis area) to Allied 100, LLC of Madison, WI.

The seller, CPR Plus, provides life-saving skills training to more than 100,000 individuals for close to 30 years in the St. Louis area. Their comprehensive and convenient CPR training courses are accredited by the American Heart Association and administered by friendly instructors with extensive experience.

Benchmark International successfully facilitated the transaction between River City Medical Associates (RCMA), a Florida network of medical clinics, and Skylight Health Group, Inc. of Ontario, Canada.

The seller, RCMA, is a multi-location, multi-specialty medical group offering various services, including primary care, urgent care, chiropractic treatment, physical therapy, pain management, neurology, otolaryngology, plastic surgery, and podiatry. The buyer, Skylight Health, is a healthcare and technology company operating in the U.S. market with more than 30 medical clinics across 14 states.

The acquisition of a U.S. healthcare provider by a Canadian healthcare company introduced unique vectors for a successful deal. Regulatory hurdles existed on both sides, adding depth to the deal dynamics.

Skylight Health Co-Founder and CEO Prad Sekar noted of the process, “Benchmark International was able to facilitate a smooth and quick transaction that helped both parties achieve their goals. We highly recommend them to anyone looking to purchase a company.”

Regarding the deal completion, Transaction Director William Sullivan and Benchmark International commented, “Because this process involved the purchase of a private US healthcare provider by a publicly-traded Canadian acquirer, there were a number of regulatory and other issues to navigate. Ultimately, however, we found the right buyer for our fantastic client and were thrilled to manage the complexity necessary to get a great outcome for both parties.”

Benchmark International facilitated the transaction between StatKing Consulting, Inc and Genesis Biotechnology Group.

The seller, StatKing Consulting, has been providing data related clinical services to the pharmaceutical and medical device industries for over 30 years. StatKing has evolved to become an industry-respected, full-service Contract Research Organization led by two distinguished individuals, Dennis King and Rod Lashley. Both Dennis and Rod have assembled a world-class team of experts to navigate regulatory approval studies.

“Finding the right buyer for the business we had built over the last 30+ years was very important to us. Besides having the expertise to guide us through the steps in selling our business, Benchmark had the resources to connect us with several companies that fit our requirements. Benchmark also provided invaluable guidance as we successfully negotiated a particularly difficult situation enabling us to complete our sale.” – Rod Lashley, EVP StatKing Consulting, Inc.

The buyer, Genesis Biotechnology Group, is a New Jersey based healthcare company providing clinical diagnostics, drug discovery solutions, and manufacturing/distribution of essential laboratory products.

"The way pharma companies work with CROs is changing. CROs are taking more of a strategic planning role and execution in the drug discovery and development process. This engagement model results in sponsors and CROs becoming end-to-end partners, and M&A is helping CRO's extend their service portfolio to partner with their customers in providing greater efficiency in service and delivery across the R&D continuum. The acquisition of STATKING would bring GD3 one more step closer to becoming a full-service CRO," said Ben Bandaru, Ph.D., Director of Corporate Development for GBG.

Regarding the deal completion, Transaction Director Matthew Kekelis at Benchmark International commented, “Benchmark was thrilled to bring StatKing on board as a client. We enjoy working in all industries, but it’s always special working with healthcare companies given our office location in the heart of Nashville’s healthcare hub. Dennis and Rod have built a great company, and I know Genesis will carry on their legacy.”

Benchmark International is pleased to announce the acquisition between Alliance Dx LLC and Tesis Laboratory, doing business as Claro labs.

Alliance Dx is a clinical pathology laboratory that provides diagnostic testing services for physician-referred patients in the healthcare sector. The company examines and analyzes DNA, body tissue, and other bodily samples for testing specific to cancer diagnostics. The company provides laboratory testing services for end-user patient clients who have been referred by physician clients in hematology and oncology for the Greater Houston, Texas area.

Claro Labs provides physicians, physician groups, and hospitals with full-service complex clinical diagnostic testing in an accurate and timely manner. Claro Labs prides itself on maintaining state-of-the-art technologies and equipment, meeting the highest industry standards.

Sam Ruta, former owner and CEO of Alliance Dx, commented, “The Benchmark Team did an excellent job of facilitating a transaction quickly and went above and beyond to keep all parties on track and on schedule until the very end.”

Anthony Hernandez, Benchmark International Transaction Director, shared, “the Benchmark Team is delighted to announce the successful sale of Alliance Dx to Tesis Laboratory, resulting in a swift exit for the seller despite the negative macroeconomic headwinds resulting from the current pandemic. The team at Benchmark International is excited about the future of Alliance Dx under the strategic ownership of the Tesis Laboratory group and wish each of the parties every success in their future endeavors.”

Benchmark International is pleased to announce the transaction between Marley Drug, Inc. (“Marley Drug”) and Medicure Pharma Inc., the US subsidiary of Medicure Inc. (“Medicure”).

Marley Drug is a North Carolina corporation owned by Dr. David Marley and his wife, Elizabeth Marley. The company operates as a hybrid walk-in local pharmacy and a nationwide mail-order pharmacy focused on providing affordable prescription drugs. Established in 2002, the company is licensed throughout the United States, including Washington D.C., and in Puerto Rico.

Medicure is a pharmaceutical company focused on the development and commercialization of cardiovascular therapeutics for the U.S. market. Medicure Inc. is based in Winnipeg, Canada, and trades under the symbol MPH on the TSX Venture Exchange. Its subsidiaries include Medicure International, Inc. (Barbados), which owns the U.S. rights to AGGRASTAT and two U.S. corporations, Medicure USA, Inc. and Medicure Pharma, Inc., which distributes the company’s products in the United States.

Albert D. Friesen, PhD, CEO of Medicure Inc. commented regarding the deal, “The team at Benchmark International was very helpful in facilitating the Medicure Inc. acquisition of Marley Drug, Inc. Benchmark was well organized and kept the discussion and deal making on schedule for a timely closing to the original target date, for which I thank the entire Benchmark International team.”

The acquisition enables Medicure further to expand the distribution of its products within the United States. As a manufacturer, Medicure intends to provide branded medications, as well as extremely low-cost generic medications.

Dr. Marley commented, “It’s a perfect and responsible transition for Marley Drug.” Regarding Benchmark International, Dr. Marley added, “I can’t begin to express my gratitude to Benchmark International for their role in facilitating the sale of Marley Drug. As someone with zero experience in the M&A world, they were patient with me, as well as educational and efficient. It goes without saying I simply could not have asked for a smoother transaction. In fact, I doubt I could have had a successful transaction without the Benchmark International team.”

Senior Transaction Associate Sunny Yang Garten at Benchmark International commented, “It was a pleasure to support Marley Drug in this transaction. Dr. Marley and his team were wonderful to work with. They were engaging and always responsive to diligence requests. This acquisition represents a tremendous opportunity for both businesses and their teams. On behalf of Benchmark International, we wish both companies continued success.”

November 2020 Benchmark International facilitated the transaction between Associates in Pediatric Therapy (serving Kentucky and Indiana) and VersiCare Group of Detroit, MI.

The seller,  Associates in Pediatric Therapy, has provided therapeutic services to children with special needs in Metro Louisville, Lexington, Bowling Green, Erlanger, and Southern Indiana since 2007. Renea Sageser, CEO of APT, and husband Scott started with six part-time employees and grew to over 175 employees who serve patients in rural areas to receive high-quality care closer to their homes.

The buyer, VersiCare Group, is a Detroit, MI-based provider of home and community-based services for children and adults with intellectual and developmental disabilities.

“We are pleased to welcome APT to the VersiCare Family,” stated Lauren Sclesky, CEO of VersiCare. “When we decided to launch an aggressive growth plan in 2018, we targeted companies who share the mission in “helping people succeed” that has led to VersiCare’s success. With this new partnership, I am confident we can continue to provide best-in-class services across Kentucky and Indiana in addition to our other service areas.”

Benchmark International was fortunate enough to represent another highly sought after business opportunity with Associates in Pediatric Therapy.  “We had a lot of connections along the way.  We never know who he is going to put in our path.  We challenge ourselves every day to be better.  We are only here for a short period of time.  I pray we cross paths again one day.  Thank you and your team for their contributions,” stated CFO of APT, Scott Sageser.

Matthew Kekelis, Transaction Director with Benchmark International, added “Scott and Renea Sageser are truly the most caring clients whom I have ever had the pleasure of working with.  Their passion for providing quality care to children in need and providing a family environment for their staff is commendable. It deserves to be recognized.”

Benchmark International is pleased to announce our attendance at Kayo’s Healthcare Investment Forum on December 2, 2020.

The conference will explore why private equity finance has become such an attractive option for healthcare companies, with a focus on healthcare service, practice management, and healthcare tech.

Attendees include:

• C-Suite executives at public and private healthcare service and healthcare technology companies
• Venture capital, private equity, healthcare and private equity industry advisors, and lenders

Link to Forum Registration: https://kayoconferenceseries.com/summits/ 
Link to Agenda: https://kayoconferenceseries.com/healthcare/healthcare-investment-summit-agenda/ 

Kayo’s Healthcare Investment Forum

The conference will cover new technologies, new entrants, a shift to outpatient and home-based services, and the move towards value-based care continue to create new financial pressures for healthcare organizations. As healthcare leaders reimagine their services and transform operations, private equity is stepping up to help.

Kayo believes women should have a community that supports, elevates, and champions them. That’s why they create industry events where professional women can connect with leaders, advance themselves, and champion other women. They want women to know they’re stronger when they Trailblaze Together.

Jordan HR is a niche human resources firm that specialises in the recruitment of medical practitioners, with a keen focus on Locum Pharmacists.

Benchmark International is pleased to announce the transaction between Kent-based Maitland Medical and London-based The Doctors Clinic Group (DCG).

Established in 1995, Maitland Medical is an occupational health advisory/consultancy, supporting businesses with recruitment, the promotion of wellbeing at work and absence management. It has a strong team of occupational health specialists delivering tailored, high quality clinical advice and support for corporate clients, SMEs, schools and academies.

DCG provides a comprehensive range of affordable GP services, including consultations, health screens, blood tests, diagnostics and some common secondary care pathways, from 15 locations throughout London. It provides affordable and easy access for individuals, corporates and insurers to private GPs.

The acquisition is part of a strategy to become a national healthcare services platform in the UK, allowing both companies to extend their geographical reach and allow DCG to offer additional services such as absence management and ‘fitness for task’ medicals.

Value-based Care

Quality, affordable healthcare remains an important issue for people all over the world, from Europe and the United States to Asia and Africa. As global healthcare spending continues to skyrocket, people are demanding more bipartisan policies from their political leaders to address the problem. This is why value-based care solutions are starting to play a major role. The industry is undergoing a shift in focus from treating illness to achieving and maintaining wellness. These solutions are more productive and less wasteful, as they aim to avoid unnecessary testing and interventions. Up until now, this role has been typically driven by health plans, but physicians and health systems are getting more involved in the full spectrum of care. All of these elements of value-based care represent huge growth opportunities in the digital healthcare coming-of-age, with various forms of technology as the major impetus.  

Technology, Artificial Intelligence, and Data

Technologies that automate nonclinical duties such as paperwork are being developed to save physicians time and allow them to focus on patients. The implementation of electronic health records (EHRs) and artificial intelligence tools is expected to better connect patients, physicians, health systems, and health plans. Physicians will be able to utilize EHR data to manage illnesses with fewer scheduled in-person appointments.

Virtual care is also an emerging market factor in the changing healthcare landscape. Many people put off doctor visits until their condition worsens, which increases costs such as emergency room expenses. New virtual care technologies are enabling patients to see a physician from the comfort of home. It also means that physicians are able to see more patients. TeleHealth Services is an ideal example of this trend. It uses digital information, computers and mobile devices to access and manage health care services remotely. In the last few years, nearly three quarters of major employer health plans had incorporated TeleHealth software services into their benefit packages.

Tech-enabled medical devices and services are another growing trend. This includes wearable devices, digital therapeutics, and applications that collect and communicate data. Last year, FitBit acquired Twine Health, a health-coaching platform that helps people improve health outcomes while helping health systems, plans, and providers reduce healthcare costs. Last summer, Amazon acquired the online pharmacy PillPack for almost $1 billion, and drug giant GlaxoSmithKline entered into a four-year agreement with the online platform 23andme, the world’s leading DNA-testing-kit resource for consumers. Also in 2018, Roche acquired Flatiron, which uses oncology EHRs to connect oncologists, academics, hospitals, researchers and regulators on a shared technology platform. 

Cloud technology also brings new benefits to the table, such as easy integration of immense datasets, and AI capabilities that analyze data and provide insights remotely. Cloud technology is expected to continue to gain momentum, as data—both big and small—are finally being used in ways that may make a meaningful difference for the healthcare industry.

Healthcare Mergers & Acquisitions (M&A) in 2019

The industry saw ample M&A activity last year, and this activity has already carried over into 2019, with several major deals already closing in January. There are also some big moves in the works that everyone is watching. A proposed merger between retail pharmacy CVS and insurance giant Aetna has drawn much speculation and scrutiny as it still awaits regulatory approval as of this month. Walmart has been in talks to merge with insurance provider Humana, another sign of major retailers attempting to take a stake in the healthcare industry. 

With the growing digital health market and continued pharmaceutical innovations, M&A strategies remain a preferred growth plan for executives and it is expected that there will be lively M&A activity throughout 2019. Southeast Asia has drawn abundant attention, with a 92 percent increase in healthcare IPO volume last year. Plus, the stock exchange in Hong Kong introduced new rules allowing biotech companies to issue shares even before recording revenue or profits. Singapore, Indonesia and Malaysia all have ripe environments for new opportunities. And even despite trade tensions, rising interest rates, and volatile markets, deal-making activity in the region remains forecasted to grow. 

What it Means for You

Whether you are seeking a new investment, looking to grow your company, or considering selling your business, a great deal of financial opportunity lies in the global healthcare industry. 2019 may very well be the right year for you to make a move. If you contact our specialists at Benchmark International, we will use our global connections and mergers and acquisitions expertise to help you carefully craft the ideal opportunity for you and your next venture. 

Since the early 70’s, Nashville has been considered a hub when it comes to the health care industry.  Nashville has developed and changed the landscape of the industry in the past 50 years.  The development of the community began with Hospital Corporation of America (HCA). Largely through hundreds of mergers, acquisitions and well as new companies, we’ve seen industry trends set in Nashville, as well as startups and spinoffs bringing different sectors of the industry to Nashville. 

Before the Hospital Corporation of America, most hospitals were non-profit or affiliated to a religion.  In 1969, one year after inception, HCA became a publicly traded company.  This changed the landscape of the industry for good.  Through an abundance of M&A transactions, HCA now owns and operates more than 170 hospitals in 20 states across the country. In 1995, the Nashville Health Care Council was established, understanding the Nashville health care industry was responsible for $3.7bn in revenue at the time, while providing 53,000 jobs.  Today, the council reports $92bn in annual revenue generated, all while providing more than 570,000 people employed around the globe by healthcare companies based in Nashville.  There are over 900 companies that directly provide health care services, or are in some way involved in the industry.  These numbers are massive, and spurred a ripple effect around the country causing more private equity spending to focus into the industry.  This effect has led to eighteen publicly traded healthcare companies calling Nashville their home, while enticing more than $1bn in venture capital investments over the past decade.  The leaps and bounds made during the past 50 years are obvious, as the entire landscape of the industry has complete changed.  During 2006, Bain Capital, Kohlberg Kravis Roberts & Co. and Merrill Lynch completed a $33bn leveraged buy-out of HCA.  This was the largest leveraged buy-out to date and spurred an unprecedented amount of investment in the industry.  In 2011, HCA returned to the public market in the largest US private equity-backed IPO to date ($3.79bn raised).  HCA’s chain system business model was emulated by hundreds of not-for-profit hospitals throughout the country, and they are considered to be the trailblazer of the industry. 

The M&A landscape continues to change the healthcare industry to this day.  Through the first half of 2018, the healthcare sector saw deal value increase to $315bn, up from $154bn in the same period the previous year. The healthcare sector ranks third in terms of total deal value.  From a valuation perspective, healthcare M&A transactions were at an all time high in 2017.  A large driver within the space was within the senior housing and care marketplace. The number of announced transactions is on pace to set a new record, but the dollar amount of these deals will not exceed the record.  While this shows the hyperactive nature of the marketplace, these deals are occurring as smaller transactions rather than the mega-deals we’ve seen in the past.  This is a very attractive marketplace for sellers all things considered.  Private equity groups accounted for a large uptick in spending during Q4 of 2018. Financial buyers are notably optimistic about the healthcare market, with 120 total deals announced in the final quarter of 2018.  This bodes well for 2019 with 2018 in the rearview, healthcare continues to expand due to high valuations, a very large number of transactions, and an increasingly attractive marketplace. 

For the third year in a row, the number of small business transactions reached record numbers, as reported by BizBuySell.  Financial performances of the small businesses are increased year over year, as well. 49% of sellers said their businesses performed better in 2018 compared to 2017, and another 36% had similar figures comparably.  With financial performance increasing, the value of the transactions inevitably grew.  The medium asking price for small businesses in the US grew 10% from 2017, a clear indication that buyers are willing to pay more for businesses with a proven financial track record and promising futures. 

Author
Sean Ryan 
Analyst
Benchmark International

T: +1 615 924 8522
E: Ryan@benchmarkcorporate.com 

A study by Private Equity Info has identified the top 10 industries that private equity firms have been acquiring during 2018. Below is a breakdown of the industries along with why they have been so popular with private equity firms.

M&A is playing an increasingly important role in the changing landscape of the healthcare industry with a growth in these types of transactions globally.

In 2017, the value of M&A deals in the industry rose 27 per cent to $332 billion and the deal count increased 16 per cent.

The US has been particularly prevalent in this area, with a recent study by Mergermarket showing that there were 579 deals for healthcare targets in 2017, the second-highest on record.

We’ve recently been seeing at first hand the rise in medical and healthcare sector mergers and acquisitions both domestically and internationally, with Dublin-based Clanwilliam Group’s synergetic acquisition of Cheshire-based NHS technology provider Medisec (brokered by Benchmark International) the most recent example.

Benchmark International is pleased to announce the sale of Vitanium Systems Limited to Lane Telecommunications.

Think healthcare M&A is on its way out in 2016? Think again.

Benchmark International has successfully negotiated the sale of Conarc, Inc. (“Conarc”) to Swiftcurrent Holdings, Inc. (“Swiftcurrent”), an affiliate of ESW Capital, LLC ("ESW"). The transaction represents the conjoining of two best-of-breed solution providers.

Based in Alpharetta, Georgia, Conarc develops and sells client management software solutions used in a variety of industries including finance/accounting, real estate, healthcare and insurance. Conarc’s flagship content collaboration software product, iChannel, was built from the ground up by the Conarc development team, allowing the company the flexibility to offer a multifaceted solution with the ability to customize features to client specifications. Additional programs within the Conarc suite of products include a customer relationship management solution, workflow module, a file management system and multiple finance and accounting database products.

For nearly 20 years, Conarc has been committed to finding innovative ways to connect people, businesses, and ideas. With a current presence throughout the United States and Canada, Conarc remains dedicated to continuing improvement and growth.

Based in Austin, Texas, Swiftcurrent is part of the ESW Capital group (www.eswcapital.com) and is specifically focused on acquiring and growing industry-focused business software companies. ESW buys, transforms, and runs mature software and technology companies. By taking advantage of its unique operating platform, ESW revitalizes its acquisitions for sustainable success while making customer satisfaction a top priority. ESW and its affiliated companies have been in the enterprise software space since 1988, and the group includes notable brands such as Trilogy, Aurea, Versata, and Ignite Technologies.

Benchmark International’s Tyrus O’Neill acted as the lead on this transaction and was successful in pinning down the needs of both parties involved, “This is one of those transactions where the parties were truly a good fit right from the start.” O’Neill stated, “On behalf of Benchmark International, we are thrilled to have been able to work alongside our client, Conarc, in this transaction. Chet Joglekarhas built a tremendous suite of software solutions and we believe it is a perfect fit for Swiftcurrent.” Senior Associate, Sunny Garten, added, “We have really enjoyed working with our client, Chet Joglekar, and would like to take this opportunity to wish both parties the best of luck moving forward.”

Conarc, Inc. CEO and Founder, Chet Joglekar, stated, “Benchmark International’s hands-on approach during all aspects of the transaction process was fundamental in our successful deal closing. Benchmark’s industry knowledge and relationships proved to be highly valuable as they assisted us in identifying a buyer that fits our innovative culture and provides Conarc with the resources necessary to continue the company’s trajectory of rapid growth.”