What to Expect in Healthcare Investing in 2023

The Banker's Corner

On this episode of The Banker's Corner, McGuireWoods' Geoff Cockrell invites Raj Kothari, Managing Director at Cascade Partners, to discuss the current challenges of the healthcare investing market.

An uncertain market and disagreements on valuations have created an interesting start to 2023, which saw a decrease in transactions in the first quarter. For those looking to make larger healthcare sales, the general consensus seems to be to wait until Q2 or Q3 and see if market conditions improve.

Raj recognizes that buyers are being more thoughtful and cautious when considering a deal. However, the lower and middle market valuations are holding up.

“If you’re an investor, you're looking for long-term cyclical trends, and all the long-term cyclical trends say that [healthcare-related services] are going to work well,” Raj says on why he chooses to play in the healthcare sector. “If you've got a good service or technology that lowers costs or improves efficiency, and does anything to help, it's going to get more and more traction.”

Featured Guest

Name: Rajesh Kothari

What he does: Raj is the founder and managing director of Cascade Partners where he leads divestitures, recapitalizations, acquisitions, and other strategic transactions for clients in the healthcare, industrials, business services, and technology sectors. He has also co-managed multiple private equity funds and dozens of early-stage investments to buyout.

Organization: Cascade Partners

Connect: LinkedIn

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