SOURCE: American HealthCare Capital

October 21, 2008 08:00 ET

American HealthCare Capital, a HealthCare Mergers & Acquisitions Advisory Firm, Releases Fourth Quarter (2008) HealthCare Industry Outlook

LOS ANGELES, CA--(Marketwire - October 21, 2008) - Business As Usual During Alterations

Everybody in the healthcare industry is asking the same question: How will the crisis on Wall Street affect us? Although turbulence in financial markets certainly warrants concern, Jack Eskenazi, a partner with Los Angeles based American HealthCare Capital, feels rather bullish about the healthcare services mergers and acquisitions marketplace. Healthcare services is a huge industry that is characterized as much by rapid growth as it is by a high level of fragmentation. These are the fundamentals that drive consolidation and attract capital in the form of both equity and debt.

We take nothing for granted. Uncertainty is never good for business, but we feel that healthcare services is an industry that offers shelter from the storm. At American HealthCare Capital, we are helping our clients to analyze current market conditions and offering advice to help them make the most of a potentially challenging situation. We've been around long enough to have seen plenty of ups and downs in the market. There will certainly be winners and losers to come out of the latest episode, but to us it's just "business as usual during alterations."

If the bad news is that healthcare providers need liquidity in credit markets in order to stay in business, then the good news is that credit markets need qualified borrowers like healthcare providers in order to stay in business. The healthcare services industry has proven to be one of the most reliable segments of the economy. Unlike what was seen in the dot-com and subprime mortgage bubbles, the healthcare services industry has experienced sustained and steady growth due to rock-solid market fundamentals: an aging population needs effective care no matter what happens in the economy. As responsible financial institutions look for promising places to invest capital, the healthcare services industry continues to look like a relatively safe bet.

To date, we have not experienced a single buyer terminating a transaction due to an inability to secure financing. To the contrary, buyers have reassured us that their lenders are as eager as ever to consummate good transactions. Also, we continue to get inquiries from growing companies looking for strategic acquisitions and from private equity investors who are looking for a way to enter this thriving market.

About American HealthCare Capital: American HealthCare Capital is a nationwide corporate finance and mergers & acquisitions advisory firm that specializes in meeting the needs of middle market healthcare providers. AHC is active in every modality within healthcare services industry including but not limited to homecare, hospice, DME/IV/O2, medical staffing, acute care, long-term care, psychiatric care, diagnostic imaging, and pharmacy services.

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