M&A Healthcare Advisors (MAHA) has formally announced its new status as a registered agent of Finalis, a FINRA regulated Broker-Dealer based in New York & San Francisco. According to certain reports, the stated development will allow the firm to become a full-fledged investment bank, while simultaneously empowering it to more effectively navigate the complexities of healthcare transactions. On top that, the firm’s new status also significantly broadens its services and ability to meet the needs of clients in what has turned out to be a increasingly demanding regulatory landscape. Talk about the whole value proposition on a slightly deeper level, we begin from how sell-side representation will remain MAHA’s core focus, but having said that, its new status will allow the company to offer a range of other services. These services include conducting securities or equity transactions. You see, without FINRA compliance, an intermediary cannot facilitate securities transactions, creating significant risk for sellers with un-registered representation. Fortunately enough, MAHA’s registration with a Broker-Dealer does a lot to mitigate seller risk, as it ensures proper compliance is maintained throughout any type of transaction. Not just that, it also enables the company to conduct other private placement transactions. More on the point of private placements will include that MAHA can now raise capital for its clients through this instrument, helping the company look beyond seller buyouts. In essence, clients here can choose to pursue minority interest investments or raise money through private placements. Apart from that, there are also available a set of debt financing options which they can structure closely with underwriters, along with other offerings like restructurings, or assisting clients with how to reinvest their proceeds. This happens to be a fresh territory for MAHA because many structures, which entail raising capital, mandate the placement agent (the engaged firm) to be registered with a Broker Dealer.
Moving on, MAHA can further leverage extensive market knowledge and established relationships with institutional investors to help clients navigate market dynamics, assess investor sentiments, and optimize transaction structures to best suit their needs. Another facility which the company can deliver at your disposal is concerned with adhering to strict regulatory requirements set by organizations like the SEC. We get to say so because registration with a Broker Dealer ensures transactions meet all legal standards, thus minimizing regulatory and future legal risks. To give you an example, if a transaction is structured as an equity purchase, then it is absolutely critical for the M&A Advisor to be a Registered Agent.
“The majority of self-guided or poorly represented transactions falter and fail,” said Andre Ulloa, Founder and Managing Director of M&A Healthcare Advisors. “The reason is simple: most fail because they do not have access to the experts and advisors needed to guide them and advocate on their behalf through the challenging M&A process. We are enhancing our well-established Seller Representation and M&A Consulting services through affiliation with a broker-dealer. This can ensure proper compliance throughout the process and provide us with investment banking resources to more effectively serve our client’s needs.”
Hold on, we still have a couple of bits left to unpack, considering we still haven’t touch upon MAHA’s promise to provide comprehensive network and capital resources. This translates to an event where, assuming a client has capital needs or they are looking to properly conduct a sale of their company, MAHA can approach a multitude of “deal support” affiliates within its network. Lastly, there is the restructuring service, meaning if a company is in some distressed situation, MAHA can work with you or your creditors to formulate a restructuring plan. By that, we refer to its potential in terms of working with a legal team to define the debt payment schedule and how to recover the business from liquidation. MAHA can also be the agents for a Section 363 process.
