The opening panel at The Deal's Healthcare Dealmaking Symposium examined the effects that the race for the White House may have on healthcare M&A throughout 2008 and into next year, where all panelists agreed that uncertainly related to who may win the race would slow down dealmaking this year.
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Russell L. Carson, the co-founder of Welsh, Carson, Anderson & Stowe, said that "people are going to want to wait and see what happens with the White House. If you have a Republican, there probably won't be a lot of change; but if you see a Democrat elected, then dealing with the uninsured will be a top issue. Bad debt is going to turn into good revenue -- although either party is going to have to do something to address the budget deficit. Medicare is the single biggest expense, and you'll see some changes there."
"The current administration is seen as friendly," said Michael Boublik, co-head of M&A at Morgan Stanley's investment banking division. "There's a view that there's a window now, and that the regulatory environment is going to get less friendly in a new administration."
Todd Sisitsky, a partner at TPG, added that his firm is "cautious about the regulatory environment and have been for the last two years. I think in the services and pharmaceuticals sectors, in particular, it's time for some caution, and it's time to limit exposure to Medicare."
Carson ended with a warning for the industry, no matter which party controls the presidency in 2009: "You make a real mistake thinking that Washington is your friend; Washington is not your friend." -
George WhiteSee more stories from The Deal's Healthcare Dealmaking Symposium
