As Donald Trump takes the reins of American government, his policies are still unclear. But his love of the deal holds promise for the future of mergers and acquisitions.
At Paragon Ventures we are seeing unprecedented buyer and investor interest in growing, profitable healthcare providers across the continuum of care during the Trump administration.
The prime motivators for buyers and investors are efficient operating businesses, population health initiatives, technology driven and well managed operations and… as always, the continued growth of the aging demographic.
Four trends to watch that may affect your healthcare M&A plans include:
Bank liquidity. Now may be a good time to take advantage of cheap capital.
A slow rise in debt costs. Consolidating may reduce the pressure of high healthcare operating costs.
IT leading the way. Consolidations in healthcare IT should increase. Drug companies may buy more overseas assets if Trump implements tax amnesty.
Pro-growth policies. If Trump can boost the GDP, healthcare entities can scale operations and gain more negotiation leverage.
We anticipate that the M&A markets for healthcare companies in 2017 shall continue the strong pace of 2016. Although we can not predict the specifics of how the Affordable Care Act will be changed, repealed and replaced, corporate buyers and strategic investors remain well funded and positioned for acquisitions.
The demographics that have predicted continue to deliver growing populations, more effective technologies and enhanced life-spans. These growth propellants will continue to be key factors for the M&A markets to embrace growing and profitable healthcare businesses during the Trump administration.
To schedule a confidential discussion on the current strategic options for your business, call Paragon Ventures or click here to schedule a confidential conference (without obligation).
