Market carnage followed healthcare reform in March for the home healthcare industry. Public company shareholders didn't appreciate $40B in proposed cuts to Medicare reimbursements. Mergers & acquisitions initially surged, as consolidatation became a necessity, but several prominent deals then stalled due to restrictions on transfers imposed by the 36-month rule.
In the past few weeks, however, mergers, acquisitions, and market perception have rebounded. Gentiva Health Services Inc. (GTIV) are up sharply. The strength is primarily due to the fact that GTIV reached an agreement over the weekend to acquire Odyssey Healthcare Inc. (ODSY) for $27.00 in cash, a premium that reflects shareholder confidence that strategic transactions of this type will drive new growth and profits.
The overly-expansive provisions introduced to the 36 month rule in December were also rescinded in the past few weeks. While revised provisions are expected to be introduced any day, they are predicted to include a small fraction of the prior restrictions. As a result, many of the private buyers and equity groups who have been waiting on the sidelines are now aggressively pursuing home heatlhcare targets again.
Bob Forbes has over 18 years of experience in business transactions, as a business intermediary, owner, and private equity executive. His exceptional service to his clients is backed by his extensive experience in strategic and tactical marketing, negotiating complex business transactions, capital planning and placement, and business valuations.
Prior to forming Forbes Mergers & Acquisitions, Bob was an owner and key executive for 5 other businesses in the energy, information technology, and service sectors, where he orchestrated a number of M&A transactions. Prior to his entrepreneurial career, Bob did transaction work for 2 private equity groups. He has served on the board for 7 different companies. He presently serves on 2 boards where he provides strategic marketing and finance expertise.
Bob is a Certified Business Intermediary and has a degree in Finance and International Business from the University of Colorado at Denver. He is a member of the International Business Brokers Association, Association for Corporate Growth, and Colorado Association of Business Intermediaries, and he holds a Real Estate Broker’s License. He is an acclaimed business speaker and author of numerous published articles.