Healthcare PE Deals – Old and New Trends

In this episode Scott Becker talks with John Meindl and Taryn Nasr, Directors in VMG Health’s Valuation & Transaction Advisory Division. The three leaders discuss the recent macro and micro trends for Healthcare PE Dealmaking and the outlook for dealmaking in 2023. This episode is sponsored by VMG Health


Healthcare PE Dealmaking is Focusing on Tuck-Ins and First-in-Class Assets


In this episode of the podcast, Scott Becker talks with John Meindl and Taryn Nasr from Valuation & Transaction Advisory Division of VMG Health. The three discuss the recent trends in Healthcare PE Dealmaking, including the shift towards tuck-ins and first-in-class assets. The podcast is sponsored by VMG Health.

PE Firms Focusing on Tuck-Ins and First-in-Class Assets

Private equity firms are leaning towards tuck-ins instead of platform deals due to the current interest rate environment. The firms are also creating multiple arbitrage by buying low and selling high while taking advantage of direct lenders and private capital markets for financing. There has been an increase in secondary buyouts, and there is a focus on first-in-class assets due to decreased supply and increased demand leading to bidding wars.

Creative Funding Solutions Due to Banks Capping Out

With banks capping out from lending, private equity firms are having to come up with more creative solutions to fund deals. In 2022, banks were lending in the high fives to six times EBITDA. Equity sponsors have had to come up with more of the cap table relative to 2021. Healthcare is considered a recession-resistant industry, and private equity's allocation to healthcare has been about 15 to 16% of funds. Sub-industries within healthcare that are currently very active include ophthalmology, orthopedic practices, dental practices, urgent care, oncology, and behavioral health.

PE Transactions and Investment Periods

Private Equity transactions usually involve either PE investments or strategic joint ventures. It is essential to carry out an in-depth financial analysis of your business and familiarize yourself with recent transactions and investment periods when dealing with private equity for the first time.


Note: This is an AI generated transcript, not edited by a staff writer and is solely intended for educational purposes. If you have any questions/concerns, reach out to


This episode aired on 05/11/2023 and can be listened here.


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