Alright, healthcare gang. What’s going on? The year started of relatively slow in terms of large-scale PE bets in healthcare. And now we’re seeing an explosion of M&A. On the heels of billion-dollar-range transactions for Definitive Healthcare and Advarra, this week was no exception.
I sometimes hear stories about the final hours of deal negotiations, with private equity execs, senior managers and lawyers working through the night. For some, that means a whole lot of waiting around for the finalizing of documents, etc., etc.
Such was the case with EQT’s Press Ganey. It wasn’t until 3 a.m. Tuesday morning that an agreement was virtually signed up to sell the patient experience company to an investor group including Leonard Green and Ares Management, a source with knowledge of the situation told me.
The outcome? Valuation ultimately fell within the $4.2 billion and $4.3 billion range, sources said this week. Read my story for more detail.
The late night dotting of i’s and crossing of t’s was no indication of conflict, I’m told. In reality, it was one of the “least drama-oriented signings” that many dealmakers in the mix have experienced, the source said.
Besides a shared respect among the various parties, we all know a personal connection never hurts.
Let’s take a step back: The company best known as a patient-survey company was founded in 1985 after a couple of profs at the University of Notre Dame — Dr. Irwin Press and Dr. Rod Ganey — teamed up with a mission to determine how to systematically and scientifically measure patient satisfaction at hospitals.
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