In today’s rapidly evolving global healthcare landscape, market participants encounter a wealth of potential alongside a diverse range of challenges. We understand the importance of negotiating complex and ever-shifting regulations efficiently when structuring cross-border investments and transactions.
In our Guide, you’ll discover invaluable insights to help navigate the dynamic world of healthcare, unlocking opportunities and understanding the developing regulatory landscape.
Below are the top takeaways for McDermott and EY at the 2022 J.P. Morgan Healthcare Conference: European Healthcare Private Equity Forum
Download the PDF here.
A FANTASTIC TIME FOR HEALTHCARE
Healthcare proved once again to be a resilient and innovative asset during the pandemic. Multiple new buyers are emerging, and they are making significant investments and large transactions across all sectors. The year ahead promises to be an active one with no signs of slowing down.
EUROPE IS INCREASINGLY ATTRACTIVE
Beyond the fact that the healthcare market in Europe is roughly a $2 trillion market, there are advantages to having a global portfolio. One of the big attractions of the European market is that it’s not just one market. Across countries and regions, the systems and stages of development are different; [...]
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Digital health has never been hotter, and investor interest is surging across all stages. From early- to late-stage investments, lines are blurring with increased disruption in the digital health landscape. Traditional private equity and growth investors are moving earlier in the cycle in an attempt to capture the next unicorn, and venture capital investors are doubling down on their own portfolio. In this forum, private equity and venture capital leaders reviewed the state of the market and shared their approaches to investing in 2022 and beyond.
Below are the top takeaways for McDermott Will & Emery and EY at the 2022 J.P. Morgan Healthcare Conference: Acceleration Capital
Download the PDF here.
According to statistics from Rock Health, 2021 was the largest funding year for digital health to date, with $29.1 billion raised across 729 deals. Not only did 2021 see a record number of digital health deals, but the deals were larger than ever before: The average deal size in 2021 was $39.9 million, and the number of deals worth more than $100 million doubled from 2020 to 2021. In 2021, the six
top-funded value propositions were research and development, on-demand healthcare, treatment of
disease, fitness and wellness, healthcare marketplace and nonclinical workflow. The six top-funded
clinical indications were mental health, diabetes, cardiovascular, primary care, musculoskeletal and
oncology.
Two key trends are driving this massive influx of [...]
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During this session, leading private equity investors explored key drivers and trends across diverse industry subsectors. They examined how shifting regulations and the upcoming 2022 midterm elections may alter the deal landscape and mapped out strategies for adapting and thriving amid change. Panelists also offered their exclusive insights into emerging opportunities in health information technology (IT) and forecasted the next evolution of today’s hypercompetitive market.
Below are the top takeaways for McDermott and EY at the 2022 J.P. Morgan Healthcare Conference: Healthcare Private Equity Leaders Forum
Download the PDF here.
From a macroeconomic perspective, the US healthcare market has seen growth through the COVID-19 crisis because of unprecedented government intervention, a significant rebound in consumer spending (although with pockets of softness) and an outlook for historically high nominal growth as COVID-19’s impact recedes but price inflation takes center stage. Although healthcare spending and employment levels have largely returned to pre-pandemic levels, the spread of the Omicron variant poses a threat to this stability, and the labor supply faces serious challenges. Workforce shortages have yielded significantly higher rates of labor cost growth—particularly in post-acute care—helping to drive healthcare inflation. While rising inflation will not necessarily inhibit healthcare deal activity, if corporate interest rates increase, healthcare investments could be affected.
In this current economic environment, investors are paying attention to entities and innovations with the potential to relieve constraints on the healthcare system. Prominent [...]
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In today’s supercharged private equity market, being a buyer is a tricky position. It’s tough to win deals and even more challenging to get them signed and closed on sellers’ extremely tight deadlines. Krist Werling, partner and co-head of the Private Equity Practice Group at McDermott, was joined by industry leaders to discuss these issues and the dynamics facing those on the buy side of healthcare private equity. The panel included:
Access the full takeaways here.
Watch the session recording here.
The second year of the Biden administration and the potential ending of a world-shifting pandemic will surely shape the 2022 healthcare investing market. To gain insight on the year ahead, Curtis Lane, founder of WindRose Health Investors, hosted a panel with some of the leading voices in investment banking. Panelists joining Lane included:
Access the full takeaways here.
Watch the session recording here.
Fueled by historically low interest rates, all time high levels of committed—but unallocated—capital and impending tax reform, private equity deal volume and values have reached new, record-breaking heights, and they continue to rise during what everyone predicts will be a very strong fourth quarter. Frank Steinherr, co-head of the Private Equity Practice Group at McDermott, was joined by industry leaders to make sense of this very frothy and seller-friendly deal environment. The panel included:
Access the full takeaways here.
Watch the session recording here.
Kevin Miller—a partner at McDermott Will & Emery whose practice largely focuses on the securities, tax and regulatory aspects of complex transactions—moderated a panel during HPE New York 2021 that looked at how government actions will impact the market. The panel feature:
Access the full takeaways here.
Watch the session recording here.
McDermott’s signature HPE New York event is right around the corner on October 15, 2021. This year more than ever, it’s a must-attend for private equity investors, healthcare executives, lenders, consultants and leaders across the industry.
Here are the top five reasons you don’t want to miss this exclusive event:
We look forward to virtually welcoming you to HPE New York in just a couple weeks. Click here to register today.
After a year during which uncertainty in the equity markets became the new normal, many stakeholders are wondering whether the disruptions are behind us. A look at key indicators might lead one to say yes. The S&P Loan Index has returned to pre-pandemic levels, the default rate is significantly below the peak of 10% seen during the great financial crisis, and roughly $840 billion of M&A value was realized in 2020 versus $802 billion in 2019—and $290 million in Q1 2021 alone. But under the surface, several COVID-19-related factors and other market shifts still have the potential to lead to second-order or longer-term impacts.
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