The inexorable aging of the global population has long made the entire healthcare spectrum an attractive place for investment.
The inexorable aging of the global population has long made the entire healthcare spectrum an attractive place for investment.
And this includes those mainstays of medical offices, hospitals, and treatment facilities — the medical products and supplies used by professionals every day in both clinical and nonclinical settings, as well as by their patients.
This space is exceptionally broad, encompassing everything from consumables like bandages, gloves, and tongue depressors to tools like blood pressure cuffs, surgical instruments, and stethoscopes. So broad, in fact, that it’s difficult to approach this sector with a single game plan. Regulations, reimbursements, and technology changes mean differing products and supplies may not perform equally.
Yet taken as a whole, the space is attractive because there is definite
growth ahead. Industry analysts forecast the market to exceed $300 billion
this year, and grow by approximately 4-6% per year after that.
While there are some cost pressures, the tide is rising in your direction
thanks to attractive multiples — generally 8 to 10 times EBITDA — and a fair
amount of consolidation among both manufacturers and distributors.
Some recent deals include DJO Global’s acquisition of Rikco, a leading manufacturer of diabetic footwear. Linsalata Capital’s purchase of NeuroTherm, a leading manufacturer of pain management products. And The Pritzker Group’s acquisition of ACI Medical Devices, manufacturer of catheters, injectors, and other devices, from RoundTable Healthcare Partners.
In this dynamic marketplace, the best place to get started is The Capital Roundtable’sbrand-NEW full day conference on private equity investing in medical products and supplies companies Thursday, June 16, in New York —
Private Equity Investing
In Medical Products & Supplies Companies —
Capturing Opportunities
With the Wind at Your Back
Plus, we’re happy to extend a professional courtesy when you sign up now for this conference — our generous Early Bird Discount. You’ll be entitled to special savings of $400 on your seat when you make your reservation by April 22, 2011!
20 Medical Products & Supplies Experts with Hands-on Knowledge.
Medical products and supplies wend their way into numerous end markets, and each generally has its own individual strategy. Your approach to selling into hospitals will differ from that for nursing homes, alternative care facilities, physical therapy, and rehabilitation centers, chiropractors’ offices, and the like.
You’ll also want to present a diversified face to the lending community. Both senior and mezz lenders consider medical products and supplies one of the bright spots among private equity, and were getting deals done in 2009 while other sectors were not as active. However, lenders do want to see that you have exposure to various payer constituencies and are not dependent on just one.
With Medicare’s push toward competitive bidding, reimbursements are a wild card for medical products and supplies. The regional panels that determine reimbursement rates may be replaced by an auction process that will ostensibly drive down prices. It’s possible that each product may only have one approved vendor, or a small handful, where volume could go through the roof or fall through the floor.
So your payer mix — cash and private insurance reimbursements vs. Medicare and Medicaid — has never been so important.
To examine the intricacies of this sector in full detail, we’re delighted to have as our conference chair Jeffrey A. Lipsitz, managing partner at Cortec Group, a New York City private equity firm that targets specialty middle-market manufacturing, distribution, and service companies with revenues of $40 – $300 million.
At Cortec Group, Jeff has bought 17 companies in the medical products and supplies space over the past decade, and serves as a director of several portfolio companies. He was formerly vice president of corporate development for PlyGem Industries Inc., a U.S. manufacturer and distributor of specialty building products. Jeff graduated with a BA from Union College and received an MBA degree from the Columbia Business School.
Along with Jeff, our four panel discussions will feature 20 knowledgeable private equity experts in medical products and supplies, including GPs, portfolio company operating executives, investment bankers, lenders, consultants, and more. They will share their real-world perspectives, lessons learned and industry outlooks, including insights on recent deal activity and managing current portfolio companies.
Register now to get the secrets of success in this dynamic marketplace, including —
• What is the outlook for medical products and supplies in 2011-2012?
• Which are likely to be the best areas of opportunity for medical products and supplies investment?
• What key challenges do medical products and supplies firms face today from changing reimbursements?
• How are current and proposed regulatory issues likely to affect medical products and supplies companies and their investors?
• How is consolidation affecting the medical products and supplies space?
• Why do many lenders view medical products and supplies so favorably?
• Which vertical markets, such as hospitals or acute care facilities, hold the most promise for medical products and supplies companies?
• What key steps can portfolio companies take to manage overall costs? What are the best practices that management can employ?
• What have been some of the most representative middle-market deals in the sector?
• How are lenders viewing the medical products and supplies segment?
• And much, much more.
You’ll Have Plenty of Time to Network with Attendees & Speakers.
Throughout the day, this conference provides numerous opportunities to make valuable contacts and connections. You’ll be able to exchange ideas and swap business cards with your colleagues over session breaks and an open lunch.
You should attend this conference if you are a —
• GP or LP looking to invest in medical products and supplies companies.
• New private equity firm considering investing in medical products and supplies companies.
• Hedge fund manager or venture capitalist interested in this specialized space.
• Partner or operating executive of a medical products and supplies portfolio company.
• Lender seeking participation in medical products and supplies transactions.
• Investment banker pursuing deals with medical products and supplies companies.
• Attorney or advisor representing medical products and supplies companies.
• Executive search professional recruiting for the private equity industry.
Remember, register with our Early Bird Discount by April 22, 2011, and you’ll save $400 off our standard fee! Seats are available right now, but not for long, so please make your reservation now so you’re not disappointed. We’ll be looking forward to greeting you.
For more information, please feel free to contact Shaina Mardinly at 212-832-7333 ext. 0 or [email protected].
This conference is being produced by The Capital Roundtable, America’s leading conference organization focusing on “need-to-know” information for professionals in the middle-market private equity community. For more information about The Capital Roundtable’s 30 annual MasterClasses and other events and programs, please visit www.capitalroundtable.com.
