At the 2024 ViVE conference in Los Angeles, Ezra Mehlman, Partner at HEP, sat down with Chitra Nawbatt, host of HLTH’s The Beat, to discuss the current state of the healthcare IT and services markets and where HEP sees opportunity. Ezra and Chitra analyzed the fall of the proverbial healthtech “unicorns” in recent years and its impact on the venture capital market, noting the correction is beginning to realign the VC-company supply-demand imbalance. In the face of this market contraction, profitable public companies are commanding nearly triple the revenue multiples of their unprofitable peers. The conversation further underscored a shift toward increased expectations from customers, which has marginalized many “nice-to-have” tools and services in favor of mission critical solutions that directly address the most acute pain points affecting healthcare organizations. Finally, Ezra predicts an uptick in M&A activity over the next five years, particularly for companies with enterprise values under $250 million, fueled by substantial private equity dry powder, ample strategic cash holdings, narrowing buyer-seller price deltas, and a constrained IPO environment.
The full 12-minute interview can be found here: https://vimeo.com/935784621
If you would like to view more content from Chitra and other industry voices during the 2024 and past ViVE Conferences, please check out the full content library at the following link: https://community.hlth.com/public/content