HPE New York 2022: Getting Your Deals to the Finish Line in an Evolving Environment - McDermott Will & Emery

HPE New York 2022: Getting Your Deals to the Finish Line in an Evolving Environment


In this session, Krist Werling, Partner & Co-Head of Private Equity, and David Ivill, Partner & Healthcare Private Equity Practice Area Leader, moderated a panel that provided insight on how investment bankers are getting deals done, and the concerns of the Buyer and Seller’s they represent in the process.

Session panelists included:

  • Ryan Bell, Managing Director, Moelis & Company
  • Michael Dodds, Managing Director, Jefferies & Company
  • Mark Francis, Managing Director, Head of Healthcare, Houlihan Lokey
  • Fred Levenson, Partner & Co-Head of Private Equity, McDermott Will & Emery

In Depth

Top takeaways included:

  1. Deals are trending to take longer to get over the finish line. Buyers are approaching the changes in the market with a wide variety of views and differing confidence levels. The fluctuating interest rates impact cash flow and impact a Buyer’s approach to a deal. Sellers should expect an increased scrutiny on the deal process, including QOE analysis and legal due diligence process. The Buyer’s diligence process is likely to be stricter than years past, the Buyer will want to do more initial diligence to gain a full understanding of the investment opportunity. Buyers are less likely to glance over EBITDA decreases that were common from 2020 to early 2022.
  2. While interest rates may make getting the deal done harder, it does not mean deals are stopping. However, both Buyers and Sellers should have a conviction to the process, invest and showcase the high quality attributes and have confidence in their respective teams to get the deal across the finish line.
  3. Similar to the Seven Steps of Grieving, Bankers must take the responsibility to get both Buyers and Sellers through the various steps of the deal and show them the light at the end of the tunnel. With financing taking longer, with the process being more detail oriented, with less interested parties in the market, Sellers will need to find the right Buyer to get a deal done.
  4. European funds are hyper focused on the healthcare market, however, it is Buyer beware, as there is a slight uptick in distressed situations.