Bass, Berry & Sims attorneys Tatjana Paterno, Davis Mello, Bob Brewer, Philip Lewis and Roy Wyman authored an article for ACG Middle Market Growth highlighting what healthcare investors need to keep in mind as they consider opportunities in healthcare technology.
More and more private equity (PE) and family office investors have been pivoting toward investments in healthcare technology and artificial intelligence, the attorneys said, but the healthcare sector in particular requires comprehensive technology due diligence as IP ownership issues and cybersecurity vulnerabilities could lead to unwelcome post-closing surprises if not proactively managed.
Other issues discussed in the article included navigating cap tables, tax issues, HIPAA compliance and the importance of quality of earnings reviews. To manage potential HIPAA compliance challenges, Bass, Berry & Sims has developed a tool, HIPAA Architect, that PE firms and other investors can use to evaluate compliance ahead of a deal.
“Healthcare tech M&A offers immense potential for PE and family office value creation, but success hinges on proactive risk management. Consult experienced advisors early to help navigate these issues and position your deals for optimal outcomes,” the attorneys said.
The full article, “Key Considerations in Healthcare Technology M&A,” was published by ACG Middle Market Growth on December 10 and is available online.