Becker’s ASC Review spoke with Eric Major, director at Provident, and Praveen Suthrum, president of NextServices, a healthcare management company, about what a potential deal could look like, who the platform could sell to and what the ramifications of such a deal would mean to the industry.
Note: Responses were presented alphabetically and edited for style and content.
Question: What could a potential deal look like if Audax does sell Gastro Health this year?
Eric Major: As an early mover in the consolidation of the gastroenterology sector with a multistate presence, Gastro Health will be a highly sought-after platform by larger private equity firms and strategic buyers. The [mergers and acquisitions] markets within healthcare services have largely returned to pre-pandemic levels, which means Gastro Health should see valuation multiples from proposals in the 14- to 15-times range [or higher].