Guest Post: Andy Dixon, Harris Williams & Co.
Follow Up to the Recent “Capital Meets Innovation Summit”
I appreciated the opportunity to participate on the panel and enjoyed meeting many of you at the Capital Meets Innovation Summit. For those of you that I did not have the chance to speak with, I wanted to take this opportunity to provide some additional information regarding Harris Williams & Co. and our Healthcare & Life Sciences group.
Having closed 47 transactions with an aggregate value of over $7 billion in 2008, Harris Williams & Co. is one of the largest mergers and acquisitions advisory firms in the country focused exclusively on the middle market, and represents private equity groups as well as publicly and privately held companies. The firm has a dedicated Healthcare & Life Sciences group, consisting of 13 professionals based in our San Francisco, CA and Richmond, VA offices, which is one of the leading healthcare platforms in the middle market and has successfully executed transactions for companies spanning a broad spectrum of healthcare products and services. The group focuses on transactions in the medical and life sciences products, facilities and alternate site healthcare services, and ancillary services and outsourcing sectors of the healthcare market. A brief overview of the Healthcare & Life Sciences group’s recent transactions can be found on our website at http://www.harriswilliams.com/business/recent_trans.php?temp=4e5802bf63aab34481d292ef3efe9cee.
As I mentioned during the panel, healthcare is one of a select set of industry segments in which there continues to be meaningful M&A activity. While the total number of healthcare transactions was down approximately 13% in Q1-09 relative to both Q4-08 and Q1-08, M&A activity remains strong in a number of healthcare sectors. HCIT is a real hot spot right now for deal activity with attractive valuation multiples possible for well-positioned, growing companies that can demonstrate that their product/solution improves clinical efficacy and/or reduces overall system cost. In addition, we see medium-term momentum in specialty and institutional pharmacy, home health, and proprietary and contract medical devices, which should accelerate as the legislative picture begins to firm up in the latter part of 2009.
In addition to our transaction work, from time-to-time our Healthcare & Life Sciences group publishes a “Market Monitor,” in which we provide an overview of key trends and M&A activity within a specific sector of the healthcare industry. We recently published a Market Monitor on the Contract Research Organization (CRO) sector (available at http://www.harriswilliams.com/pdf/CROmarketmonitor.pdf), which may be of interest to many of you. We have developed similar pieces on the Specialty Pharmacy and Diagnostic Imaging sectors as well, which I would be happy to provide upon request.
If anyone has any questions about Harris Williams & Co. and our Healthcare & Life Sciences group, please feel free to give me or Todd Morris a call in our San Francisco office at 415.288.4260 and we would be happy to chat further.
Harris Williams & Co.
575 Market Street, 31st Floor
San Francisco, CA 94105