As noted above, DFB Healthcare Acquisitions is a blank check company, which means it does not have any real operating business. Instead, the company was formed explicitly for the purpose of acquiring or merging with another company. In the case of DFBHU, it's strategy will be to identify, acquire, and build a healthcare or healthcare related businesses. Within the healthcare sector, it plans to take a diverse approach, focusing on opportunities in therapeutics, devices, diagnostics, and animal health.
The company was founded by its management team and Deerfield Management Company, which is a healthcare firm with over $9.6 billion in assets under management. Its management team is led by Richard Barasch (President & CEO), who previously was CEO of Universal American Corporation, which was acquired by WellCare Health in April 2017 for $2.5 billion. As CEO of Universal American, Mr. Barasch executed over 20 acquisitions and divestitures.
As for Deerfield Management, its investment activity spans both the public and private markets and it invests across all healthcare sectors, without restriction on the size of the company. In 2017, the firm executed over 50 transactions involving new and existing portfolio companies.
In terms of the specific acquisition opportunities it will be seeking, DFBHU says it will focus mainly on middle-market businesses as it believes it has the strongest network to identify the greatest number of opportunities there. So, it does not intend to acquire start-up companies that do not have a clear-path to profitability.
Also, it will seek businesses that have achieved or have the potential for significant revenue and earnings growth through a combination of organic growth (new products, geographies) and add-on acquisitions. And lastly, it will focus on acquiring companies that have a proven and experienced management team, and, companies that would benefit from being taken public.
The company has not yet identified an initial business combination. But, it says that its anticipates structuring the initial business combination so that the post-transaction company in which its public stockholders own shares, will own or acquire 100% of the equity interests or assets of the target business or businesses.