HIT Consultant March 14, 2025
What You Should Know:
– The recent acquisition of Walgreens Boots Alliance by private equity firm Sycamore Partners is drawing scrutiny due to the high level of debt financing involved and questions surrounding Sycamore’s equity commitment.
– According to a Securities and Exchange Commission (SEC) filing, 83.4% of the financing for the Walgreens buyout is debt, totaling $22.5B. This is more than double the average debt level (41%) used in private equity acquisitions last year.
PESP Raises Alarms About Potential Risks
The non-profit watchdog Private Equity Stakeholder Project (PESP) has released a statement expressing concern about the leveraged buyout of Walgreens. PESP emphasizes the risks associated with private equity investment in healthcare companies, citing the potential for:
- Increased...
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