Bass, Berry & Sims M&A and private equity attorney Ryan Thomas provided insight for an article published by The Wall Street Journal Pro Private Equity on the implications that legislative action around the Affordable Care Act (ACA) may have on the healthcare private-equity market. Despite the uncertainty of the healthcare markets at the moment, Ryan noted that “there continues to be high multiples, high leverage and a high level of interest in the health-care space this year.”
Ryan further explained, saying that “private equity firms willing to take risks in reimbursement-heavy assets may reap the benefits in the future. ‘A lot of investors have gone in during the cycles of uncertainty and [doubled] down in these times. … Those that grab the market share in the uncertain times tend to be way ahead.'”
“In general most private-equity players are subtly changing their strategies, rather than fully changing course, to account for a new health-care bill. Firms have expressed interest in consumer-related health-care companies …,” said Ryan.
The full article, “Cooper’s Take: Taking Risks May Pay Off for Health-Care Investors,” was published on May 8, 2017, by The Wall Street Journal Pro Private Equity and is available online (subscription required).