Semi-Annual
Market Review
HEALTH IT & HEALTH INFORMATION SERVICES
JULY 2019
www.hgp.com
Copyright© 2019 Healthcare Growth Partners
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TABLE OF CONTENTS
Health IT Executive Summary
3
Health IT Market Trends
6
HIT M&A (Including Buyout)
9
Health IT Capital Raises (Non-Buyout)
14
Healthcare Capital Markets
15
Macroeconomics
19
Health IT Headlines
21
About Healthcare Growth Partners
24
HGP Transaction Experience
25
Appendix A – M&A Highlights
28
Appendix B – Buyout Highlights
31
Appendix C – Investment Highlights
34
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Copyright© 2019 Healthcare Growth Partners
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HEALTH IT EXECUTIVE SUMMARY
An Accumulating Backlog of Disciplined Sellers
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Let’s chat about fireside chats. The term first used to describe a series of evening radio addresses
given by U.S. President Franklin D. Roosevelt during the Great Depression and World War II is now
investment banker speak for “soft launches” of sell-side and capital raise transactions.
Every
company has a price, and given a market of healthy valuations, more companies are testing the
waters to find out whether they can achieve that price. That process now looks a little more
informal, or how you might envision a fireside chat.
Price (or valuation) discovery for a company can range from a single conversation with an individual
buyer to a full-blown auction with hundreds of buyers and everything in between, including a fireside
chat. Given the increasing share of informal conversations, the reality is that more companies are for
sale than meets the eye.
While the healthy valuations publicized and press-released are encouraging more and more
companies to price shop, there is a simultaneous statistical phenomenon in perceived valuations that
often goes unmentioned: survivorship bias. Survivorship bias is the logical error of concentrating on
the information that made it past some selection process and overlooking the information that did
not, typically because of a lack of visibility. What this bias does in the M&A market is lead to false
conclusions around com