State of the Healthcare M&A and Investment Market: Let the Good Times Roll?

• M&A deal values in 2007 reached it highest levels ever
• Increase in Cross Border M&A and Investment Activity
• Continued upward trend 2008?
• 2007 & the Subprime Market Collapse – Where do we go from here?

Moderator: Steven Elek, III, Partner-in-Charge, Healthcare Transaction Services, PricewaterhouseCoopers

Panelists:

• Christine Arakelian, Vice President, Business Development, Omnicare
• Geoffrey Ligibel, Vice President, Healthcare Group, Houlihan Lokey
• Brian Miller, Partner, Linden LLC

KEYNOTE ADDRESS: Understanding Acquisition Opportunities in Medicare Managed Care
In this keynote address a leading consultant, deal advisor and matchmaker in Medicare Advantage and Part D will discuss the approaching M&A blitz as the industry consolidates and contracts in the face of looming Congressional action and resurgent government enforcement. Gorman will address several aspects of transactions in Medicare managed care from both the buy side and the sell side, including the following:

• Major trends driving attractive opportunities to buy or sell in Medicare managed care
• What criteria make for an attractive deal in Medicare, especially in the long term
• Why Medicare Advantage dealmaking is unlike commercial insurance – and why geography matters
• Sell side: how to “put on the lipstick” and effectively prepare for sale and drive valuation
• Buy side: how Medicare-specific due diligence drives better pricing
• The morning after: considerations in integration and post-deal transition

John K. Gorman, CEO, Gorman Health Group

Seeing Past November 2008: Where is the Regulatory Landscape Headed?

• Presidential Election 2008
• New Head of CMS
• Expecting and Preparing for stronger regulatory scrutiny of deals
• Impact of the mergers evaluated market by market and the divestment of certain operations

Nathan Goldstein, Senior Vice President, Strategic Development, Gorman Health Group

Andy Bressler, CFA, Managing Director, Banc of America Securities

Lambert van der Walde, Capital Markets Advisor to the Administrator, Centers for Medicaid & Medicare Services

Cause and Effect: Changes in Medicare Reimbursement Policies and The Rise of Untapped Areas in Healthcare M&A
Due to the current and prospective changes in Medicare reimbursement policies, buyers have been focusing on diversification in several product areas. Areas that previously were of less interest, and in some cases avoided, are now on the radar screen and are being pursued by certain buyers. With so much reimbursement pressure on traditional Medicare-reimbursed targets, the profile of the “ideal” acquisition candidate is evolving. This panel will analyze this trend, including discussion on:

• Why buyers are showing interest in companies that have significant non-Medicare revenue sources?
• Where are the new areas of interest?

Bob Funari, Chairman & CEO, Crescent Healthcare

Tim Petrikin, CEO, e+healthcare

Barry Alexander, Partner, Nelson Mullins Riley & Scarborough LLP

Healthcare Technology
The health care technology segment attracted the largest amount of capital, capturing two dollars out of every three invested in health care M&A. The third quarter also posted 12 billion-dollar deals across all sectors, worth a combined total of $31.0 billion, or 64% of all M&A dollars in the third quarter of 2007.

• What can be expected in 2008
• Who are the big players?

Michael O’Neil, Senior Vice President, Strategy & Development, HealthSpring

Frank Stonebanks, Senior Advisor, Corporate Development, IBM Corporation

Daniel C. Lyons, MD, President and CEO, Veridign Health Solutions

Medical Devices, Biotechnology and Pharmaceuticals: Why are they so hot?
Deal volume in the healthcare sector in October 2007 surged to its highest monthly level ever. A total of 102 deals – with over $14.0 billion in commitments – is evidence that investment and M&A activity in the healthcare space will be robust in 2008 and beyond. The three sectors with the highest deal volume:

• Medical Devices – 20 Deals in October, 2007
• Biotechnology – 19 Deals in October, 2007
• Pharmaceuticals – 19 Deals in October, 2007

Scott Kozicki, Founder & CEO, Truu Health, Inc.

George L. Hunnewell, Vice President, Corporate Development, PAREXEL International

Eric Lev, Principal, Water Street Healthcare Partners

The Credit Crunch Domino Effect: How and Why will the Healthcare M&A Market Continue to Prosper?
The recent turmoil in the subprime mortgage market set the stage for significant speculation about the effect on the overall M&A market. Despite this and the ensuing credit crunch in the fourth quarter, the healthcare M&A market remained robust. This panel shed light on:

• Absence of billion dollar deals
• Looking to the middle market
• Continuing to make a profit
• The emergence of the strategic buyer
• Successful deals despite the meltdown

Moderator: Steven R. Anderson, Managing Director, CapitalSource Finance

Panelists:

• Burk Lindsey, Managing Director, Health Care Investment Banking Group, Raymond James & Associates
• Sean Traynor, Member, General Partner, Carson, Anderson & Stowe
• Ananth S. Bhogaraju, Managing Director, Head of Healthcare Services, Deutsche Bank

Private Equity’s Increasing role in Healthcare M&A?
Does the current credit environment presage an even more dynamic role for private equity? This distinguished panel will provide an in-depth discussion and analysis of questions surrounding the future role of Private Equity in the Healthcare M&A market.

Moderator: Bill H. Baker, Partner-in-Charge, Healthcare Transaction Services, KPMG, LLC

Panelists:

• Philip A. Borden, Principal, Riverside Partners
• Franklin M. Stokes, Managing Director, Robert W. Baird Healthcare Investment Banking

Nexus of Investment Opportunities Involving Non-Profit Health Systems, Financial Sponsors & For-Profit Entities: A Powerful Combination
The non-profit healthcare services segment represents a substantial majority of the market for all healthcare services provided today yet there have been few inroads by the financial sponsor community to foster mutually beneficial partnerships with this vast market segment. This panel will explore a nexus of opportunity sets where non-profit health systems can partner with financial sponsors and other for-profit entities to further each other’s respective mission and objective. Among the opportunities we observe are: i.) direct- and co-investments in early- and growth-stage healthcare venture companies (within health services, devices, life sciences, HCIT, and others) as well as commercialization of R&D; ii.) acquisitions and joint ventures involving non-profit healthcare providers and other healthcare services entities; iii.) potential growing opportunity for mezzanine and/or bridge investments in non-profit health systems; and iv.) non-profit health systems’ increasing interest in alternative investment funds.

Moderator: Stephen Fletcher, Director, Wellspring Partners (A Huron Consulting Group Practice)

Panelists:

• Matthew P. Kinley, Senior Vice President, Equity Dynamics, Inc. and Pappajohn Capital Resources
• Jim Rolfe, Vice President, Acquisitions & Development, Community Health Systems, Inc.
• Manfred Steiner, Managing Director, Wellspring Partners (A Huron Consulting Group Practice)

Cross-Border Deals: Trends in M&A Deals from Across the Ocean
In recent years, business globalization has spurred an unprecedented surge in cross-border merger and acquisition activity. The world gets smaller every year and it is clear cross-border M&As have become a fundamental characteristic of the global business landscape. Cross-border deals at the end of 2007 are on their way to exceed 40% of total volume accounted for.

This roundtable discussion will examine the rampant increase of these international deals and the impact it is having on the US Healthcare M&A industry as it expands to become a competitive player on a global scale.

Moderator: Michael Froy, Partner, Sonnenschein, Nath & Rosenthal LLP

Panelists:

• XiaoJun Xu, President, Shanghai World Prospect Industrial Co., Ltd.
• Dave Baker, Managing Director, Lazard Middle Market
• James Forbes, Managing Director, Head of Global Healthcare Group, Merrill Lynch & Co.

Merger Complete: Developing a Transitioning Model
Planning “mergers or integration initiatives” and actually carrying out the critical post-merger activities are quite different and are what drives success versus really expensive and demoralizing failure. In this session, distinguished industry executives will shed light on their experiences and provide tools and strategies to ensure the smoothest post-merger transition possible.

Moderator: Edward Ponagai, Director, PricewaterhouseCoopers

Panelists:

• Don Adam, Senior Vice President, Chief Development Officer, RehabCare Group, Inc.
• Michael J. Kluger, Managing Director, Altaris Capital
• David Katz, Principal, GTCR Golder Rauner, LLC

Pushing the Envelope in Non-Profit Sectors

• Activities happening in non-profit healthcare M&A
• Technology and IT
• Physician Transactions and for profit centers
• Outpatient Surgeries

David Ertel, Managing Director, Morgan Stanley

Kit Kamholz, Vice President, Kaufman Hall

David J. Kates, Partner, Jones Day

Conference Concludes

Thanks for “Thinking iiBIG!”

During the course of this conference many issues will emerge that conferees will want to explore in greater detail. Time and space has been set aside for anyone wishing to participate in informal ‘working lunch’ Roundtables or One-on-One Meetings.

("Working Lunch" Buffet will be provided)

If your company provides unique products or services having to do with any aspect of Healthcare M&A – and you would like to extend invitations BEFORE the conference to specific conference attendees to schedule a more formal workshop, roundtable discussion or private one-on-one meetings, please contact:

Kellie Swanstrom ,VP Business Development, iiBIG at kellies@iibig.com – or 973-571-0867