May 26, 2020
The 2019 novel coronavirus (COVID-19) pandemic continues to have a significant effect on American lives and businesses. The healthcare industry is no exception, and private equity funds and other strategic buyers that invest in the healthcare industry should be aware of key COVID-19-related trends and considerations regarding the acquisition or sale of healthcare businesses. McGuireWoods lawyers are assisting private equity clients in a significant number of buy-side and sell-side transactions in the healthcare industry and are standing by to advise on COVID-19 key trends and considerations in acquisitions, including the following:
In addition to the key trends noted above, acquisitions and sales of distressed entities are increasing in frequency and that trend is likely to continue as the pandemic persists. There are a unique set of considerations related to the acquisition or sale of a distressed entity, impacted by the stage and degree of distress. These considerations include fraudulent transfer, fairness and solvency opinions, fast pacing due to tightness of liquidity, limited indemnity structures and, in some cases, more formal processes resulting from bankruptcies.
Please contact the authors for additional guidance on how private equity funds are managing sales and acquisitions of healthcare investments during the COVID-19 pandemic. The authors recently participated in a webinar on these topics, which is available for replay. McGuireWoods has published additional thought leadership related to how companies across various industries can address crucial COVID-19-related business and legal issues. We anticipate further developments in the days and weeks to come, and we stand ready to work with you on the challenges you face.
COVID-19: Healthcare Video AlertsIn a series of video alerts, McGuireWoods’ healthcare lawyers address issues providers face and overcoming COVID-19 challenges. |