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HOME HEALTH CARE POSTS RECORD TRANSACTION VOLUME IN 2006 PITTSBURGH, PA, January 18, 2007 The Braff Group (TBG), a leading middle market merger and acquisition firm that specializes in the home health care, hospice, infusion therapy, specialty pharmacy, home medical equipment, and staffing market sectors, released its fourth quarter 2006 merger and acquisition transaction trend report today. Based upon preliminary year-end numbers, there were 41 deals announced and/or completed in the fourth quarter of 2006, down 25% from the third quarter of this year and down 35% versus the same period last year. For all of 2006, there were 207 deals; a decline of 22% compared to 265 transactions announced and/or completed in 2005. “Not unexpectedly, in a year of substantial unknowns regarding potential further cuts to oxygen reimbursement, the greatest decline came from the home medical equipment sector” commented Dexter W. Braff, President of The Braff Group. “While Medicare legislation passed at year end did not include these cuts, an atmosphere of heightened risk remains which will likely make 2007 another challenging year for M&A in the HME arena.” Although full year deal volume in infusion therapy and specialty pharmacy was down slightly in 2006 in terms of raw numbers, the M&A market in these sectors remains strong. “We are seeing more acquisition interest in these sectors, particularly from private equity sponsors, as buyers look to capitalize on expectations of increased utilization, introductions of new, complex, high margin therapies, and a reasonably predictable reimbursement climate”, said Chuck Gaetano, TBG Managing Director for Home Infusion Therapy and Specialty Pharmacy. The brightest spot in 2006 was the home health care sector, which set a transaction volume record of 86 deals – up 6% over the previous year's record of 81. This marks the first time that home health has led all the other sectors in transaction activity. “This is just what we expected as we entered 2006” commented Steven Braff, TBG Managing Director for Home Health and Hospice. “A combination of high demand from both strategic and financial buyers, stable reimbursement, and an extremely favorable industry outlook has made for an extremely attractive M&A environment. With Medicare reimbursed services receiving a rate increase this year, we fully expect this trend to continue in 2007.” About The Braff Group The Braff Group is a leading middle market merger and acquisition firm that specializes in the home health care, hospice, infusion therapy, specialty pharmacy, home medical equipment, and staffing market sectors. The firm provides merger and acquisition representation, strategic planning, and valuation services. Since being founded in 1998, The Braff Group has completed more than 90 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 has received this award. The firm was also recognized as a finalist for Boutique Investment Banking firm of the Year in 2005 and 2006. Additionally, the firm has been honored as one of the fastest growing companies in the Pittsburgh Region by the Pittsburgh Business Times. Contact:
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