Industries Served

Healthcare & Life Sciences

  • Hospitals
  • Primary Care Services and Clinics
  • Medical Schools
  • Home Care Providers
  • Physical and Mental Therapists
  • Mental Health & Substance Use Centers
  • Veterinary Services
  • Laboratory Testing
  • Drug Stores and Pharmacies
  • Pharmaceutical Companies
  • Medical Device and Equipment Manufacturers
  • Medical Device and Equipment Wholesalers
  • Medical Equipment Manufacturer
  • Home Healthcare
  • Medical & Surgical
  • Pharmacy
  • Physical Therapy & Chiropractic Clinics
  • Mental & Behavioral Therapy Clinics
  • Dental Practices
  • Chiropractic Clinics

Beacon has previously advised several businesses in the healthcare and life sciences industry.

Mandate

Beacon was engaged by a manufacturer and licensed distributor of specialized electro-medical equipment with a 30 year history. The business was ISO certified and had product licenses in addition to a network of licensed sub-contractors which allowed the business to compete in Canada, China and the U.S. market. The owners of the business were seeking an exit due to retirement. Due to Beacon’s strong outreach across North America and experience in the healthcare and life sciences industry, Beacon was chosen as the exclusive broker and provided sell-side transaction advisory services through the entire sale process.

Implementation

Beacon began by compiling a fairness opinion to determine the business’ true fair market value and proceeded to compile deliverables and confidentially market the mandate to potential buyers. As a manufacturer of medical and healthcare equipment the business was heavily regulated and an FDA product license, Health Canada device and establishment license and an ISO certification which was mandatory. In addition, the business had a registered Delaware Corporation, which was required to import products to the United States. Given the complex nature of the deal, attention to detail and careful execution was of utmost detail. Through our large network of buyers and industry professionals, we were able to attract several buyers for the business. Based on the seller’s criteria and vision, as well as our financial acumen, we were able to pre-screen buyers and solicit offers from serious buyers.

Outcome

Beacon’s team assisted our client through every step of the sale process, and successfully completed the transaction. Beacon effectively negotiated an asset sale with a private buyer. The sale included all of the business’ operating assets, inventory and goodwill. The deal was structured with a majority payment at close and a balance amount payable in monthly installments at 5% over a three year term. Our team was actively involved through the due diligence process, ensuring transparency between both parties. In addition, Beacon assisted with succession planning to help maintain smooth operations through the transition period without damaging the value of the business.

Industry Overview

The Health and life science industry is a broad industry which includes multiple areas of upstream and downstream sub-industries in the healthcare sector. Healthcare service businesses including hospitals, clinics primary care services and therapists fall under this umbrella. In addition, manufacturers and distributors who supply equipment and components to healthcare service providers are all categorized under the industry. Key suppliers include pharmaceutical companies and drug stores, janitorial and sanitation services, industrial laundry and linen supply, medical instrument, device, and supplies wholesalers and medical schools. Upstream medical device manufacturers rely on machine shops, packaging services, and materials manufacturers as suppliers. In Canada, due to public administration and healthcare infrastructure, end customers include patients as well as insurance companies and public administration authorities. The industry is currently in its growth stage. It is characterized by rapid technological change and high R&D spending. Health Canada regulations and patent laws play a key role in industry development, especially for pharmaceutical companies and medical practices. Medical suppliers face relatively lighter regulation. The Canadian healthcare and life sciences industry has witnessed strong growth over the last five years due to increased health care spending, and an ageing demographic. There has been a rise in the rate of obesity, diabetes, cardiac disease and mental health issues in North America over the last 10 years. In addition, development in healthcare infrastructure and diagnostic techniques has generated tailwinds for the industry. This trend is anticipated to continue as more patients require access to healthcare and science makes more breakthroughs. Due to health care insurance and government aid, the industry is not sensitive to price or business cycles.
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