Healthcare Investment Banking: Why Work With a Specialist?

According to an analysis of Standard & Poor’s Depositary Receipts (SPDRs), the healthcare sector was the second-best performing sector in the year ending December 31, 2013. The healthcare sector is a relatively easy sector to identify as most people recognize the industries that make up the healthcare field, including hospitals and healthcare centers, pharma and biotech companies, drugs retailers and distributors, and laboratories developing medications and drugs. The sector has been marked by political and legislative developments in 2013 and 2014 including the passing of the Affordable Healthcare Act and the development of the act in order for it to be fully implemented in society. As such, activity in the healthcare sector returned to its previous levels of strong performance that occurred before the economic crisis. Companies in the healthcare sector can benefit from positive economic activity in terms of effecting mergers and acquisitions, company purchases and other transactions. When carrying out this activity, it pays to work with an investment banking sector specialist – here’s why.

Specific Sector Expertise

The healthcare sector is wide and diversified. It takes a specialist to fully understand the complexities of businesses that operate within the industries that make up the healthcare sector. Working with investment bankers that specifically deal with healthcare transactions means you benefit from a strong market knowledge which results in an in-depth understanding of the challenges and opportunities in the sector.

Unique Dynamics

Investment banking firms like Edgemont Capital that operate solely in the healthcare field understand the unique dynamics of the sector and can work in a way that reflects these dynamics. The insight these companies have into the sector make working with healthcare mergers and transactions more effective. You end up with a competitive advantage over other firms that work with investment bankers that do not fully understand the dynamics of an ever-changing sector.

Benefit from Senior Attention

Working with a dedicated healthcare investment banking firm makes it more likely you will be able to benefit from attention from senior managers that have been working in the field for many years. If you work with a generalist firm then it is less likely that you will be able to find this level of senior expertise – and if you do find it, the chances that you will have access to the expertise are lower.

Passionate About the Sector

Investment bankers working in the healthcare sector have developed a deep interest in the field and the market. When people are passionate about what they do, they are more competitive and more driven to succeed which brings about better benefits for you, the client. With a passion for the sector comes an understanding of the importance of the transactions in the sector that they work on. The enthusiasm for the sector also results in forging of beneficial partnerships across the spectrum those results in greater success in the transactions that are essential for healthcare businesses.