PITTSBURGH, PA, July 14, 2008 --The Braff Group (TBG), the leading investment banking firm specializing in the home health care, hospice, infusion therapy, specialty pharmacy, health care staffing, and home medical equipment market sectors, released its second quarter 2008 merger and acquisition transaction trend report today. Based upon preliminary figures, there were 51 transactions announced and/or completed in the second quarter of 2008, up nearly 11% over the prior quarter. At the mid-year point, there have been 97 deals, down 14% from the 113 transactions recorded over the same period last year.
Home health and infusion therapy continue to be extremely strong sectors, with second quarter increases of 21.7% and 100% respectively. While, year to date, both sectors are lagging slightly behind their 2007 pace, we may yet see one or both eclipse their record setting numbers of 2007.
“Despite concerns regarding reforms to the prospective payment system and the tightening of the credit markets, we’ve seen no softening of demand for acquisitions in the home health arena,” commented Steven Braff, TBG Managing Director for Home Health and Hospice. “To a large extent, transaction volume is limited by the supply of candidates coming to market. This, in turn, has kept valuations high.”
“In the infusion therapy arena, the year has already been marked by several milestone transactions, including MBF Healthcare Acquisition Corp’s acquisition of Critical Homecare Solutions,” said Chuck Gaetano, TBG Managing Director for Infusion Therapy and Specialty Pharmacy. “Moreover, Apria Healthcare Group’s 2007 acquisition of Coram, likely set the table for The Blackstone Group’s blockbuster announcement this quarter of its intention to acquire Apria. Infusion is clearly in the bulls-eye of the investment community.”
The big surprise is the HME sector which showed some life in Q2, not only with the Blackstone-Apria transaction, but the acquisition of Pacific Pulmonary Services by Teijin Limited, a Japanese manufacturer and provider of home medical equipment. “With the HME sector so unsettled in terms of competitive bidding, oxygen caps, and other reimbursement issues, the market has been ripe for outside investors to come in, and possibly re-tool, or even re-imagine, the entire service and distribution system,” commented Bob Leonard, TBG Managing Director for Home Medical Equipment. “It will be interesting to see the directions these very different buyers take as they deal with these challenges.”
About The Braff Group
The Braff Group is the leading investment banking firm specializing in the home health care, hospice, infusion therapy, specialty pharmacy, health care staffing, and home medical equipment market sectors. The firm provides an array of transactional advisory services including sell side representation, debt and equity recapitalizations, strategic planning, and valuation. Since being founded in 1998, The Braff Group has completed more than 115 transactions. In 2006, the firm was awarded Healthcare Deal of the Year by the M&A Advisor, a leading publication dedicated to middle market merger and acquisition activity, for its representation of Canadian Valley Medical Solutions – the third consecutive year The Braff Group received this award. The firm was also recognized as a finalist for Boutique Investment Banking Firm of the Year in 2005, 2006 and 2007. Additionally, the firm has been honored as one of the fastest growing companies in the Pittsburgh Region by the Pittsburgh Business Times.
Contact: Dexter W. Braff; 888-922-5169
