Bass, Berry & Sims attorney Tatjana Paterno discussed the value private equity investment can bring to healthcare companies in an article published by DirectorCorps. Private equity (PE) investment into healthcare has increased significantly in the last five years as private equity firms compete with each other to offer their significant stash of capital to healthcare providers and technology companies that serve them.
PE firms often offer the right experience and skills to turn around an undervalued healthcare company. “Some firms have excellent turnaround teams, and they can add tremendous value,” said Tatjana. “We have seen it play out with some of our clients, to the benefit of all stakeholders, including employees.”
Before reaping the benefits of increased values, healthcare executives will have to endure the potential distraction of conducting due diligence, and it is essential to prepare leadership for the amount of work that goes into preparing for sale by ensuring the appropriate resources and advisers are in place. “Importantly, don’t take your eye off the ball in terms of performance of the business,” Tatjana recommended. “This will help get the best possible value in a sale, and also minimize potential negative consequences if a sale does not materialize.”
The full article, “Private Equity: Deal or No Deal,” was published by DirectorCorps on July 31, 2019, and is available online.