Aayush Bhosle’s Post

The rise in hospital mergers in India.. This reflects a significant shift in the healthcare scenario and is driven by several key factors. Economic pressures are compelling hospitals to consolidate.  According to a report by the Confederation of Indian Industry (CII), operational costs for hospitals have risen by over 20% in recent years. Merging allows institutions to share resources, leading to greater financial stability.  For example, the merger of Fortis Healthcare and Max Healthcare in 2018 created one of India’s largest healthcare networks, improving operational efficiencies and expanding access to quality care. Quality of care is also a driving force.  By pooling expertise, merged hospitals can establish centers of excellence.  The merger of Apollo Hospitals and the Delhi-based Max Healthcare has enhanced their cardiac care services, significantly improving patient outcomes. Regulatory changes further push hospitals toward mergers for better compliance. Also, The increasing competition in the market makes consolidation essential for smaller hospitals to survive.  For instance, the merger of Manipal Hospitals (MHEPL) with Fortis Healthcare helped create a robust player in the healthcare sector, enhancing their bargaining power with insurers. As India transitions towards integrated healthcare models, these mergers enable seamless care delivery, benefiting patients with improved experiences and outcomes. By leveraging advanced technologies and shared resources, hospitals can innovate and adapt to the evolving healthcare demands. #hospital #mergers #increase #transition #innovation

🏥 Aster DM Healthcare’s Strategic Move: A Game-Changing Merger 🏥 Aster DM Healthcare has announced its proposed merger with Quality Care India Limited (QCIL), combining Aster’s expertise with QCIL's robust network of CARE Hospitals, KIMSHEALTH, and Evercare. This merger will position the combined entity as one of the top 3 hospital chains in India, with: 🔹 38 hospitals and over 10,150 beds 🔹 Plans to expand capacity to 13,300 beds by FY27 ### Key Highlights: ✅ Transaction Valuation: - QCIL: 25.2x FY24 EV/EBITDA - Aster: 36.6x FY24 EV/EBITDA ✅ Strategic Benefits: - Enhanced Scale: Access to South & Central India markets - Operational Synergies: EBITDA upside potential of **10-15% - Cash-Neutral Deal: EPS accretive from Year 1 ✅ Governance Framework: - 50% independent director representation ensures robust oversight 🚀 What does this mean for Indian healthcare? With its strong growth pipeline, this merger will address India’s rising demand for quality healthcare, particularly in non-metro regions. Do you think this merger will redefine healthcare leadership in India? Share your thoughts! 👇 #Healthcare #MergersAndAcquisitions #InvestorUpdate #AsterDMHealthcare #QCIL

M&A heats up in India’s healthcare sector Anant Kharad outlines the key themes driving mergers and acquisitions in healthcare, including expansion into Tier 2 and Tier 3 cities, value-based care, and technology integration post-COVID

JSA advised TPG, in relation to the proposed merger of its investee company, Quality Care India Limited (“QCIL”), with Aster DM Healthcare Limited (“Aster”), at a combined valuation of over USD 5 billion. The transaction also contemplates a preferential issuance by Aster, prior to the merger, for an acquisition of 5% shareholding in QCIL. The transactions are subject to applicable regulatory and corporate approvals. The combined entity will have a network of 38 hospitals and 10,150+ beds spread across 27 cities making it one of the top 3 hospital chains in India. Deal value: USD 5 billion (approx.) Our transaction team comprises Lead Partners – Iqbal Khan and Ambarish ., Partner – Ashid Basheer, and Senior Associate – Varun Natarajan. Our competition team comprises Partner and Chair, Competition Law – Nisha Kaur Uberoi, Partner – Pranav Satyam, Senior Associates – Akrathi Shetty and Kamal Sharma, and Associate – Tarun Katariya. https://lnkd.in/gQxEre7h hashtag#JSA hashtag#HealthcareMerger hashtag#MergersAndAcquisitions hashtag#CorporateDeals hashtag#LegalAdvisory hashtag#BusinessGrowth

₹43,000 Crore (~$5 Billion) Merger Recent merger between Aster DM Healthcare and Quality Care India Limited (QCIL), backed by Blackstone and TPG, marks a significant development in the Indian healthcare sector. This merger is set to create Aster DM Quality Care Limited, positioning it among the top three hospital chains in India. Key Highlights of the Merger: > Combined Entity: Aster DM Quality Care Limited will encompass a portfolio of four leading brands: Aster DM, CARE Hospitals, KIMSHEALTH, and Evercare. The merged entity will operate 38 hospitals with over 10,150 beds across 27 cities, thereby enhancing its market presence significantly. > Valuation Metrics: The transaction values Aster DM at a multiple of 36.6x FY24 adjusted post IND AS EV/EBITDA, while QCIL is valued at 25.2x for the same period. This substantial difference reflects the strategic positioning and growth potential of Aster DM. > Shareholding Structure: Following the merger, Blackstone will hold approximately 30.7%, Aster promoters will have about 24%, and the remaining shares will be distributed among public and other shareholders. Several advisory firms played crucial roles in facilitating this merger: > Moelis & Company - Financial advisor to Aster DM Healthcare > Advay Capital - Provided financial advisory services > Kotak Investment Banking - Served as corporate advisor > Cyril Amarchand Mangaldas - Legal counsel for Aster DM > NovaaOne Capital - Financial advisor for Blackstone and TPG > Trilegal - Legal counsel for Blackstone and TPG > JSA (J Sagar Associates) - Also acted as legal counsel for Blackstone and TPG > PwC - Recommended the swap ratio as an independent registered valuer > ICICI Securities - Provided a fairness opinion on the swap ratio The merger aims to address several key objectives: > Market Leadership: By combining resources, the new entity aims to become a leader in healthcare services in India, focusing on patient-centric care and operational efficiency. > Expansion Plans: The merged entity plans to increase its bed capacity significantly, with ambitions to add an additional 3,500 beds by FY27, bringing the total to approximately 13,300 beds. > Addressing Healthcare Needs: The merger is strategically aligned with addressing the growing demand for healthcare services in underserved regions of India, enhancing access to quality care. Disclaimer: All views are personal & information fetched from public domain! #Blackstone #TPG #PwC #AsterDM #QCIL #CAM #MergersAndAcquisitions #Healthcare #HealthTech

𝐄𝐱𝐜𝐢𝐭𝐢𝐧𝐠 𝐍𝐞𝐰𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐈𝐧𝐝𝐢𝐚𝐧 𝐇𝐞𝐚𝐥𝐭𝐡𝐜𝐚𝐫𝐞 𝐒𝐞𝐜𝐭𝐨𝐫: 𝐀𝐬𝐭𝐞𝐫 𝐃𝐌 𝐚𝐧𝐝 𝐐𝐮𝐚𝐥𝐢𝐭𝐲 𝐂𝐀𝐑𝐄 𝐒𝐞𝐭 𝐭𝐨 𝐌𝐞𝐫𝐠𝐞! Two of India’s leading healthcare providers, Aster DM Health and Quality CARE India, are on the verge of finalizing a significant merger. This move, structured as a share swap deal, is expected to create the second-largest listed hospital chain in India 𝐊𝐞𝐲 𝐇𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬 𝐨𝐟 𝐭𝐡𝐞 𝐃𝐞𝐚𝐥: 𝐓𝐞𝐧𝐭𝐚𝐭𝐢𝐯𝐞 𝐒𝐡𝐚𝐫𝐞𝐡𝐨𝐥𝐝𝐢𝐧𝐠: Aster DM to hold 55%, and Quality CARE to hold 45% in the unified entity. 𝐌𝐚𝐣𝐨𝐫 𝐒𝐭𝐚𝐤𝐞𝐡𝐨𝐥𝐝𝐞𝐫𝐬: Blackstone (34%), TPG (11%), and Aster's promoter family (23%) will retain significant stakes. 𝐌𝐚𝐫𝐤𝐞𝐭 𝐈𝐦𝐩𝐚𝐜𝐭: Aster DM's shares have risen 17.55% in the last three months compared to Nifty's 8.15% gain. The merged entity is estimated to have a market capitalization of ₹40,000 crore, with Aster DM contributing around 86% of that value. 𝐌𝐚𝐫𝐤𝐞𝐭 𝐂𝐚𝐩𝐢𝐭𝐚𝐥𝐢𝐬𝐚𝐭𝐢𝐨𝐧: 𝐀𝐬𝐭𝐞𝐫 𝐃𝐌 𝐇𝐞𝐚𝐥𝐭𝐡𝐜𝐚𝐫𝐞: 209.68 billion 𝐒𝐡𝐚𝐫𝐞 𝐏𝐫𝐢𝐜𝐞: ₹421.35 𝐃𝐢𝐬𝐜𝐥𝐚𝐢𝐦𝐞𝐫: This update is based on available news and is for informational purposes only. It does not constitute financial advice or recommendations. Please consult a financial advisor before making any investment decisions.

𝐄𝐱𝐜𝐢𝐭𝐢𝐧𝐠 𝐍𝐞𝐰𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐈𝐧𝐝𝐢𝐚𝐧 𝐇𝐞𝐚𝐥𝐭𝐡𝐜𝐚𝐫𝐞 𝐒𝐞𝐜𝐭𝐨𝐫: 𝐀𝐬𝐭𝐞𝐫 𝐃𝐌 𝐚𝐧𝐝 𝐐𝐮𝐚𝐥𝐢𝐭𝐲 𝐂𝐀𝐑𝐄 𝐒𝐞𝐭 𝐭𝐨 𝐌𝐞𝐫𝐠𝐞! Two of India’s leading healthcare providers, Aster DM Health and Quality CARE India, are on the verge of finalizing a significant merger. This move, structured as a share swap deal, is expected to create the second-largest listed hospital chain in India 𝐊𝐞𝐲 𝐇𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬 𝐨𝐟 𝐭𝐡𝐞 𝐃𝐞𝐚𝐥: 𝐓𝐞𝐧𝐭𝐚𝐭𝐢𝐯𝐞 𝐒𝐡𝐚𝐫𝐞𝐡𝐨𝐥𝐝𝐢𝐧𝐠: Aster DM to hold 55%, and Quality CARE to hold 45% in the unified entity. 𝐌𝐚𝐣𝐨𝐫 𝐒𝐭𝐚𝐤𝐞𝐡𝐨𝐥𝐝𝐞𝐫𝐬: Blackstone (34%), TPG (11%), and Aster's promoter family (23%) will retain significant stakes. 𝐌𝐚𝐫𝐤𝐞𝐭 𝐈𝐦𝐩𝐚𝐜𝐭: Aster DM's shares have risen 17.55% in the last three months compared to Nifty's 8.15% gain. The merged entity is estimated to have a market capitalization of ₹40,000 crore, with Aster DM contributing around 86% of that value. 𝐌𝐚𝐫𝐤𝐞𝐭 𝐂𝐚𝐩𝐢𝐭𝐚𝐥𝐢𝐬𝐚𝐭𝐢𝐨𝐧: 𝐀𝐬𝐭𝐞𝐫 𝐃𝐌 𝐇𝐞𝐚𝐥𝐭𝐡𝐜𝐚𝐫𝐞: 209.68 billion 𝐒𝐡𝐚𝐫𝐞 𝐏𝐫𝐢𝐜𝐞: ₹421.35 𝐃𝐢𝐬𝐜𝐥𝐚𝐢𝐦𝐞𝐫: This update is based on available news and is for informational purposes only. It does not constitute financial advice or recommendations. Please consult a financial advisor before making any investment decisions.

📣📣 *Breaking News of Biggest Merger in Hospital Chain In India*📣📣 **Aster DM and Quality Care Merger: Reshaping India's Healthcare Landscape** **The Deal:** Aster DM Healthcare has announced a merger with Blackstone-backed Quality Care India Ltd. (QCIL), forming **Aster DM Quality Care**, set to rank among India’s top three hospital chains alongside Apollo Hospitals and Manipal Hospitals. **Key Highlights:** - **Scale of Operations:** The merged entity will operate **38 hospitals** across **27 cities** with a capacity of **10,150 beds**, set to expand to **13,300 beds by FY27**. - **Financial Metrics:** The enterprise value of the combined entity is pegged at **₹43,000 crore ($5 billion)**, with annual revenue of **₹7,314 crore**. - **Ownership Structure:** - Blackstone: 30.7% - Aster Promoters: 24% - Public and others: 45.3% - **Leadership:** Azad Moopen will remain Executive Chairman, while CARE Hospitals’ Varun Khanna will serve as Managing Director and Group CEO. **Strategic Significance:** 1. **Market Leadership:** The merger creates one of **India’s largest healthcare platforms**, bolstering its competitive edge with a focus on patient-centric care and accessibility. 2. **Expansion Plans:** The entity plans to invest in adding 3,500 new beds by FY27 and focus on operational synergies to enhance efficiency. 3. **Global Expertise:** Backed by Blackstone and TPG, the merger integrates global best practices, innovation, and governance. 4. **Valuation Upside:** The deal values Aster at a **36.6x multiple (FY24 metrics)**, higher than QCIL’s **25.2x**, reflecting investor confidence in the merged entity’s growth potential. **The Vision:** This merger is a transformative step in Indian healthcare, combining the strengths of two leading players. With strategic investments, deep domain expertise, and a robust governance framework, Aster DM Quality Care is set to redefine the hospital industry, offering world-class healthcare services to millions. **Impact:** The merger reinforces India’s position as a growing hub for quality healthcare while setting benchmarks for scale, innovation, and efficiency in the sector.

Good morning Healthcare Staffing, First, I want to wish a safe travel to all those returning home today from the SIA Healthcare Summit in Texas. Second, this article shows the huge surge in Hospitals selling and acquiring. To quote: The third quarter of 2024 saw a significant increase in hospital and health system mergers and acquisitions compared to the previous quarter as well as the third quarter of 2023, according to an Oct. 31 report published by Cain Brothers, a division of KeyBanc Capital Markets. Third-quarter hospital M&A deals were up 79% over the second quarter of 2024 and 25% over the third quarter of 2023, according to the report.  _______________________________________________________________________________ In my opinion, this means that the investment community believes that the economy will grow rapidly and they are making deals to get the hospitals under contract before they start to grow again. That is to say "buy low, sell high" I would love to hear your opinion about this...please reply. https://lnkd.in/gd4tG75U

Private Equity Acquisitions Linked to Decline in Hospital Assets - HIT Consultant Private Equity Acquisitions Impact on Hospital Assets #PrivateEquity #HospitalAssets A recent study has found a correlation between private equity acquisitions and a decrease in hospital assets. #StudyFindings #HealthcareTrends The study analyzed data from hospitals that were acquired by private equity firms and found that these hospitals experienced a decline in assets such as equipment and facilities. #DataAnalysis #HospitalAcquisitions The decrease in hospital assets can have negative implications for patient care and overall hospital operations. #PatientCare #HospitalOperations Healthcare IT professionals should be aware of the potential impact of private equity acquisitions on hospital assets and work to mitigate any negative effects on technology infrastructure. #HealthIT #TechnologyInfrastructure Understanding the relationship between private equity acquisitions and hospital ai.mediformatica.com #hospital #healthcare #hospitals #equity #privateequity #study #acquisition #jama #acquisitions #data #investors #research #digitalhealth #healthit #healthtech #healthcaretechnology @MediFormatica (https://buff.ly/3WzMOnZ)