Good morning everyone,
What are the circumstances of the HBR case? ACE Private Equity Partners, a medium secluded equity endowment is assessing the possible purchase of two physical therapy businesses in order to build them for later selling to a bigger private equity company. This was a chance for ACE's general associates to instrument their union merging venture plan for their fund savers. The company had various nancing approaches with Maryland concentra ng more on pu ng pa ents through the procedure while Ohio is centered on development of the pa ent care's posi on.
Evaluate the physical therapy industry for poten al investment opportunity by a private equity investment fund. The physical therapy commerce is big and increasing. It would seem generous for possible invesng prospects by a private equity rm as the business has a yearly increase rate of 12% in the past 5 years. The business is also extremely disjointed, with no business managing substan al market share. The business has the volume, posi ve macroeconomic tailwinds, and a prac ce natural environment ready for merging would be a fantas c opening for private equity inves ng funds.
Cite the advantages and disadvantages.
The Benets are (1) Enormous market that remains to remain divided (2) Yearly increase rate of 12% in the past 5 years (3) elevated pressure assistance in health care. (4) It is demonstrated to be recession- resistant. The Drawbacks are (1) extremely aggressive and (2) obstacles to access.
References:
Grove, H., & Cook, T. (2008). Private Equity Case: Merger Consolida on. Case Research Journa