The Business Times
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Entering the age of buyouts in healthcare investing

Successful execution of buyout strategies requires a hands-on approach to manage investments effectively

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    • A primary advantage of buyouts is gaining access to the target company’s cash flow as a majority owner, rather than just holding minority equity.
    • A primary advantage of buyouts is gaining access to the target company’s cash flow as a majority owner, rather than just holding minority equity. PHOTO: PIXABAY

    Fu Wei

    Published Sat, Jan 25, 2025 · 05:00 AM

    AMID a slowdown in global activity, healthcare in Asia remains an attractive industry with long-term tailwinds such as continued government support, ageing demographics and growing innovation.

    However, healthcare investing in the private space is always evolving. As the market transitions from excessive exuberance to a new era of “guarded optimism”, buyout strategies – where investors acquire controlling ownerships in mismanaged or undervalued mature companies – are becoming crucial.

    This is evident with the number of buyouts rising 21 per cent in the first three quarters of 2024. This trend will continue to accelerate as the global economy continues to slow down.

    Healthcare

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