Private Equity Research

Neel V -

Hi everyone! This week at my site placement I worked with the healthcare team to find and use different resources to learn about the involvement of private equity in healthcare. 

After last week’s meeting with Jenny, she sent me the healthcare services Pitchbook report to look through myself. PitchBook is a financial data and software company providing comprehensive information on private equity, venture capital, and mergers and acquisitions deals. It offers a platform with data, analytics, and research tools tailored to help professionals in the investment industry make informed decisions. While reading, I learned that the Federal Trade Commission released updated merger guidelines in December, highlighting a shift towards examining the collective impact of multiple small acquisitions, rather than the effect of a single large transaction, in order to determine a risk of harm. Although there seems to be tighter regulations on healthcare transactions, the amount of deals that don’t go through due to this enforcement is low. 

I was also interested in the fact that the medspa industry is a standout sector for private equity deal activity. This makes sense because it is purely cash pay from individuals so they are not as affected by reimbursement and liquidity issues that other sectors are facing. Medspa has a growing consumer interest and low barriers to entry for new providers. Valuing medspas has been challenging due to uncertainties around how much a consumer will consistently spend on services there. Implementing financing plans, subscription based models, and well thought-out site locations can help minimize this risk. 

On the other hand, Cardiovascular deal activity has been slightly declining recently as independent cardiovascular groups have been closing down in favor of a more corporate environment. Private equity backed groups need to be able to attract physicians without losing referrals from local health systems. This challenge caused mergers and acquisitions in the space to slow down in the second half of 2023. 

My main focus this week was looking through research and resources from the team to gain a better understanding of private equity involvement. I am currently working with my site lead to plan future meetings with clients who took various routes regarding consolidation of their practices and I am excited to hear about what they have to say. I also included the view from my desk in the morning! See you all next week. 


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    Arnab Misra
    I think it is fantastic that you are gaining more knowledge and exposure to private equity, especially in a field as diverse and important as healthcare, wish you the best of luck in your future meetings with clients. The view looks incredible!
    Hi Neel, love the view! Your information about the medspa industry really helps me to understand why they are popping up everywhere. I wonder if that industry is also impacted by economic ebbs and flows.
    Hi Ms. Bennet. I hope to meet with some of these medspa provider clients in the upcoming months to ask them how the economy impacts their revenues and costs. I'll be sure to keep you posted on that!

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