Healthcare Transaction Activity

The total value of healthcare industry mergers and acquisition transactions within the mid-market as reported by Capital IQ in 2010’s 4^th quarter was not as robust as the 3rd quarter, which is surprising based on our expectations. However, in what is normally a period that sees a fall off from the traditional year-end pickup, transaction activity in 2011‘s 1^st quarter continued at a strong pace.   In fact, the aggregate dollar value of transactions below $1B within the past two quarters ($26BB) nearly equaled the value for similar transactions in all of 2009 ($29BB).

Americans are a demanding group but, when you cut to the chase, we can live with inconveniences. However, lack of power, and the accompanying implications on our life and lifestyles, would not be among those conveniences we could easily do without. Power is integral to all facets of our lives and, as society evolves, demand for power grows. As a result increasing demand for new and cleaner sources of power creates opportunities for investment as companies expand to meet demand or innovate to produce cleaner or more efficient power.

The year started with a proverbial “BANG” from an estate planning perspective with the passage of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 late last year. The Act, as some have named TRUJCA, could almost just as easily been titled “Estate Tax Repeal.” Regardless of the name, the new rules certainly have people talking about the numerous planning opportunities it affords, although those may be temporary.

Lately the “L” seems to be missing from LBO’s (leverage buy-outs) as a result of the lack of leverage over the past few years. However the slower mergers & acquisitions activity in the healthcare market first seen in late 2008 has recently improved, undoubtedly partially driven by the renewed health of senior debt lending to support transactions.

PCE Investment Bankers announces the recent acquisition of Pompano Beach, Fl.-based General Crane USA’s Assets by Allegiance Crane & Equipment and Prophet Equity. The transaction was originated by PCE Investment Bankers.

Leading Ridge Capital Partners, LLC, is pleased to announce its recapitalization of The Supply Source, LLC. Headquartered in Jacksonville, Florida, The Supply Source (“TSS”) specializes in supply chain management and distribution, providing its customers operational efficiencies through a single-source supply offering. The “one-stop shop” distributes packaging and shipping products, labels, janitorial supplies, and other non-resale operational items used by a growing base of top-tier customers across the retail, food manufacturing, and healthcare sectors. The services provided by The Supply Source result in price stability and consistency across branches, consolidation of vendors, improved fill rates, consistent quality, overall cost savings, and increased profits for its customers.

Increasing numbers of businesses are turning to the U.S. Bankruptcy Code for economic survival.