Key Takeaways from the Kayo Women’s Investment Forum

December 23, 2020
Firm Publication

On December 2, Bass, Berry, & Sims proudly sponsored and participated in the Kayo Women’s Healthcare Investment Forum, which explored investments in healthcare by private equity sponsors and strategic acquirors. The program covered challenges such as rising healthcare costs, changing patient demographics, evolving consumer expectations, new market entrants, and complex health and technology ecosystems.

Bass, Berry & Sims M&A member Tatjana Paterno led a fireside chat with the co-heads of Healthcare Investment Banking at Matrix Capital Markets Group, Amanda Verner Thompson and Vasanta Pundarika. Bass, Berry & Sims healthcare member Lara Flatau moderated a healthcare services panel with Emily McGinty of TA Associates, Allison Fiore of Tailwind Capital, Natalie Greene of RiverGlade Capital, Natasha Latif of The Vistria Group, and Amber Bynum of Walmart.

Here are a few key takeaways from the discussions:

  1. COVID-19 had a major impact on nearly every sector of healthcare, most prominently on telehealth and behavioral health. Telehealth in particular has seen a dramatic adoption and utilization base across the industry. Behavioral health demands are expected to increase substantially, in part, due to extended time at home. Investor interest and demand for these sectors will continue to grow in 2021 as valuation multiples increase and consolidation continues.
  2. Much of the population avoided hospitals this year causing increased demand for outpatient services, ancillary services and home care.  Additionally, several services that had previously been delivered in an inpatient setting are now increasingly being moved to delivery in outpatient settings. There is potential for increased competition and investment.
  3. Hospice also continues to be a hot sector due to  a positive reimbursement environment. While home care has had a bit more reimbursement pressure than hospice, volume continues to grow in this subsector.
  4. Many independent physicians find themselves in need of deeper pockets as they are concerned about their practices surviving COVID-19, indicating there may be an uptick in future partnerships and consolidation.
  5. Dental practices continue to be highly profitable and adaptable and, as a result, are experiencing expansive growth as things reopen.
  6. Healthcare technology continues to thrive as companies in that subsector develop innovative solutions for the current environment such as online health services, data protection, wearable technology devices, and artificial intelligence.
  7. Pharmaceutical services have been resilient. Outsourced services are well-positioned for innovation and stability. Specifically, those involved in diagnostics and vaccine development, patient engagement, and digital solutions are headed for increased M&A activity.
  8. Supply chain and vaccine development will continue to drive interest – particularly as the development and distribution of COVID-19 vaccines roll out.
  9. We will continue to see new extensions of healthcare in non-traditional businesses. One example is Walmart, which shared that more than two-thirds of Americans live within five miles of a Walmart. With the opening of its Walmart Health clinics and other initiatives, the company has been focusing on how to meet patients where they want to receive their healthcare. Partnerships will be key in delivering healthcare the way consumers want it.

Pictured: (top left) Vasanta Pundarika, co-head of Healthcare Investment Banking at Matrix Capital Markets Group, sharing one of her favorite deal toys following a transaction and highlighting the human elements that make for a great experience in investment banking; (top right) Amanda Verner Thompson, co-head of Healthcare Investment Banking at Matrix Capital Markets Group; (bottom) Tatjana Paterno, M&A member at Bass, Berry & Sims.

Pictured: (top row, left to right) Amber Bynum of Walmart and Natasha Latif of The Vistria Group; (middle row, left to right) Natalie Greene of RiverGlade Capital and Allison Fiore of Tailwind Capital; (bottom row left to right) Emily McGinty of TA Associates and Lara Flatau of Bass, Berry & Sims.

If you have any questions about the topics covered at this Kayo event, please contact one of the attendees.