Andy and JT welcome you to another episode of The Deal Board Podcast. This week, Andy speaks with Andrew Bab of Debevoise & Plimpton about the high-stakes world of healthcare mergers and acquisitions. From billion-dollar deal structures and the teams required to execute them, to the common reasons major transactions fall apart, Andy and Andrew unpack the complexity behind large-scale deals. They also explore how private equity's "dry powder" — the trillions of dollars firms keep in reserve to deploy into future deals — and the rise of AI-driven healthcare solutions are shaping the future of the industry. Tune in for an insider's view of what it takes to get big deals across the finish line and where opportunities are emerging in healthcare M&A!
Listing of the Week:
Rally de Leon, broker with Transworld Business Advisors of Raleigh, presents a premier cabinet refinishing franchise in a prime market. The down payment is priced at $149,900, and the business generates nearly $500,000 in sales with $85,000 in SDE last year. Because the current owners live two hours away, growth has been limited, but with local leadership, revenue could easily double. For more information, call Rally at (919) 602-0355 or email rdeleon@tworld.com
Deal of the Week:
Alexander Woo, broker with Transworld Business Advisors of Orange County, closed his first transaction: a long-standing hair salon. Though the business wasn't profitable, the seller needed a quick exit before relocating abroad. By repositioning it as a cost-effective alternative to starting a new salon, Alex secured a buyer within three months and closed escrow in two more. The buyer gained a ready-to-operate salon at a fraction of startup costs, while the seller moved stress-free. For more information, call Alexander at (714) 923-1222 or email awoo@tworld.com
Key Takeaways From This Episode:
[00:30] An overview of today's topic: Large M&A deals.
[03:00] Introducing Andrew Bab and his path from investment banking to law and healthcare M&A.
[07:04] The current state of healthcare and M&A amid market uncertainty, regulation, and healthcare antitrust hurdles.
[09:55] Impact of increased interest rates and private equity's $2–3 trillion in "dry powder".
[12:17] Why large deals require extensive legal, banking, and accounting teams.
[16:19] Deal timelines: negotiation, signing, and regulatory approvals.
[17:40] Common reasons deals collapse, including valuation disputes and antitrust concerns.
[20:26] The impact of AI-driven solutions on healthcare M&A deals.
[22:35] Challenges in healthcare, from staffing shortages to drug pricing pressures.
[26:14] Deal of the Week: Alexander Woo (Orange County) sold a long-standing hair salon to a buyer who wanted an affordable way to enter the business before the seller's move abroad.
[29:20] Listing of the Week: Rally De Leon (Raleigh) is selling a premier cabinet refacing franchise in a booming market with strong sales and growth potential.
Links Mentioned in Today's Episode:
Subscribe to The Deal Board Podcast YouTube Channel
Call us — (888) 719-9098
Email us thedealboard@tworld.com
Call Rally de Leon — (919) 602-0355
#thedealboard #transworldbusinessadvisors #realestate #commercial
Quotes:
"One of the headwinds for healthcare now is growing regulation. One of the areas that Trump is not relaxing [is] in antitrust [and] healthcare." — Andrew Bab [0:08:01]
"One reason deals die is a lack of agreement on the valuation of a certain aspect of the company." — Andrew Bab [0:17:45]
"I think that they will be investing more in AI driven healthcare technologies. No question. Both in drug discovery [and] in the pharma space." — Andrew Bab [0:20:33]
Longer Quotes: "You can get to a point where the antitrust authorities are signaling you that [they're going to give] you a second request. A second request is a multi million dollar process, because you've got to basically give every piece of paper that exists to the antitrust authorities. — So many people don't want to go through that, and they build into their agreements an ability to get out of the deal in that case." — Andrew Bab [0:19:35]
