Keralty buys Westchester General Hospital in Miami

By Brian Bandell
October 29, 2020

Westchester General Hospital in Miami-Dade County was sold to Keralty, an international health care firm based in Colombia.

The 125-bed hospital at 2500 S.W. 75th Ave. was sold by the family of ​Gregory Fox​. The deal includes the 78,000-square-foot hospital building and 5.7 acres of parking lots and undeveloped land. Keralty said it would retain the hospital’s 570 employees and appoint ​Juan Carlos Echandia​ as chairman. Echandia was previously the South American region president for Keralty.

The price wasn’t disclosed.

Westchester General was one of the few stand-alone for-profit hospitals remaining in South Florida.

Keralty operates Sanitas Medical Centers in Florida and three others states in partnership with Florida Blue. It also operates hospitals in Latin America and offers insurance products. The company moved its global division headquarters to Miami in 2019.

“On behalf of the nearly 20,000 Keralty employees worldwide, we welcome Westchester to our family of companies,” said ​Sergio Martinez​, CEO of Keralty Global. “This addition provides a new opportunity to expand our presence in the U.S. and to advance our journey to establish a better model of care and support for our patients and health plan partners.”

Keralty said it plans to “re-engineer” Westchester General to expand its behavioral health, advanced palliative care, and complex care for individuals with multi-chronic conditions.

According to the Florida Agency for Health Care Administration, Westchester General had a bed occupancy rate of 53.4% in 2019, which was below the county average. It lost $5.9 million on revenue of $39.3 million in 2019, a year when most South Florida hospital saw earnings growth.

Most South Florida hospitals have suffered financially during the Covid-19 pandemic this year, so having an owner with deep pockets should be beneficial for Westchester General.

“Our vision is to reimagine the services provided by the hospital and to coordinate with Sanitas Medical Centers, other healthcare providers, community organizations, and insurance companies, to establish a patient-centered health program supporting the local community and designed to keep patients healthy, rather than treating someone who is sick,” Echandia said.

Greenberg Traurig was legal advisor to Keralty in the purchase. The sellers worked with law firm McDermott Will & Emery and investment banking firm Cassel Salpeter & Co.

“When Westchester General Hospital and the Fox family who owned it approached us to help them find a buyer for their hospital, they were adamant that they were only looking for a buyer who would continue putting patients first and would provide the same quality of care that had long been the family’s legacy,” said ​James Cassel​, chairman of Cassel Salpeter. “Keralty and their Sanitas Medical Centers checked off all those boxes. We then worked closely with both parties on behalf of the seller to secure this successful outcome.”

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Fly Buying

Prices are down and interest is piqued in the post-pandemic marketplace.

By Dale Buss
September/October 2020

The future market for corporate planes is just as uncertain as everything else amid the pandemic. But some post-Covid-19 trends in business-aviation purchasing already are emerging: Prices are lower. Sales and lease activity is recovering. More company owners are concerned about the health risk of flying commercial. And after an industry struggle with pilot shortages, suddenly plenty of capable commanders for business planes are available.

Joe Mullings has been trying to take advantage of these trends in his search for a Hawker 800, a mid-size twinjet aircraft originally produced by British Aerospace and now fetching $1 million and up, previously owned. The founder and CEO of Mullings Group. an executive-search firm in the medical- device industry, travels so much that he’s long held ConciergeKey status on American Airlines. Mullings has also chartered flights for himself and his Delray Beach, Florida-based staff. When the company’s charter bill hit $1 million in 2019 and Covid-19 came, he began searching for a plane to buy.

“I had been looking because of the accessibility the plane would give me, saving wear and tear on my body, and the value of time,” says the 58-year-old Mullings. “But now, prices are more interesting. Time is money for me. If I can get in front of more customers because I have a better tool—my own plane— it will create more opportunities for me and my employees. The plane also can end up being a flying conference room.”

“Even when we return to a post-Covid environment, [airline] routes are going to be dramatically reduced anyway,” Mullings posits. “So, they won’t be able to offer rates and flexibility. And I don’t want to waste two and a half hours at airports in Palm Beach and Raleigh-Durham, sitting on a couch eating Ding Dongs.”

The Year of the Newbies

Despite prospective buyers like Mullings, business-airplane deliveries dropped by 21 percent in the first quarter of 2020 compared with two years earlier. Industry experts blamed Covid-19, which grounded air travel worldwide and created unprecedented uncertainty for business decision- makers. The giants of the industry—Bombardier, Textron and Gulfstream— responded by slashing production. But while large companies are standing down on purchases, owners of medium-size and small companies, and other high-net-worth individuals, are testing the plane market for the first time. “I’m actually calling 2020 the year of the small jet,” says Janine Iannarelli, head of aircraft broker Par Avion, in Fair Lawn, New Jersey. “They’re perfectly suited for regional travel within the U.S. At $1 million to $5 million, they’re within the reach of a broader cross-section of [company owners] who may not have a travel budget that large but who are willing to expand it now in exchange for what’s provided by corporate aviation: safety, security, eliminating a huge number of touch points and literally being able to control your environment. What’s that worth?”

Such buyers are benefiting from prices that have softened from 10 percent to 20 percent compared with early 2020, depending on the segment. The wing- tappers and tire-kickers include “a return of some owners of small and mid- size companies who actually fled the business-aviation marketplace” after the industry debacle of 2008 and 2009, Iannarelli says.

Charter and fractional-jet services are also getting closer looks by business travelers getting thwarted by airlines’ service cut-backs—and lured by how the plane-rental services are cutting prices to widen their market. “At four times the price of an airline first-class seat,” says Joseph Smith, leader of the aviation-management division of Miami-based investment bank Cassel Salpeter,” these services were never going to get most business owners. But now that they’re seeing one-and-a-half or two times prices for a first-class seat—and you throw in the health considerations—it starts to become a value proposition for them.”

Bring on the Bandwidth

Unlike the past few years, when the Trump administration’s approval of immediate 100 percent depreciation of major purchases, including corporate aircraft, goosed sales, there’s no huge regulatory or legislative development spurring interest. Technology upgrades, however, continue to intrigue buyers interested in trading up for the newest bells and whistles.

In addition to advances in propulsion and avionics that make corporate aviation faster and safer, the biggest lure continues to be digital connectivity in the passenger compartment. Makers already are offering so-called Ka-band satellite-based Internet capabilities in larger and expensive jets, which provide home-like speeds and make simultaneous high-definition streaming possible.

Some buyers are paying $70 million or more for a jet in Bombardier’s Global series that includes Ka-band—a system that often, in itself, costs a half-million dollars to include. “The flying passenger wants to stay connected just like at home,” Iannarelli says. “That’s the most important thing to them.”

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Aviation Deal Report Q3 2020

Business succession planning in the time of COVID | Opinion

President Ronald Reagan was in office little more than two months when he was shot by an unhinged gunman. In the confusion that followed, Secretary of State Alexander Haig declared, “I am in control here,” claiming power at the White House, bypassing the Vice President and the leaders of the House and Senate. While there was some good in having someone assume charge, Haig had no real authority and added uncertainty to an already precarious situation. There’s a lesson here. If you lead a middle market company and become suddenly unable to stand at the helm, don’t invite such chaos. Instead, have a plan.

Recent events at the White House show COVID-19 does not discriminate. Even while practicing social distancing and wearing a mask, one slip, and you, or a member of your leadership team, could be its next victim. Incapacitation at the top of your company could invite incalculable disruption to your business. And even if you remain virus-free, accidents happen and other health risks exist. Plan accordingly and have a succession plan to ensure your company is prepared.

Most large companies have a succession plan that’s monitored by their board, but many middle market business owners find such plans a morbid topic and avoid developing them. This is cruelly ironic given that most large companies could better manage a disruption like the death of a CEO, while smaller companies are typically much more reliant on their CEOs/leaders for everything from managing payroll to literally signing checks.

Even those who outrun the grim reaper longer than most will likely see a day when, at the very least, they may be temporarily incapacitated. What then? Remember, the well-being of colleagues, employees, partners, clients, consumers, and family, matter. Should you shed this mortal coil, or become ill, a succession plan is a good business move that ensures your legacy and protects your employees, clients/customers, as well as relatives when a family business is impacted.

Start with weighing the leadership skills, competence, and trustworthiness​ of those around you as you define your hierarchy of succession. Give these leaders opportunities and training, while mitigating competitive tensions that arise as they yearn for the throne. Be honest and make sure you have the right person or people to take over for the short and long-term.

A well-conceived succession plan keeps your company on track to hit growth targets​ even after leadership takes a hit. It establishes protocols for addressing the temporary or permanent incapacity of the person at the top and other company leaders. These protocols ensure key leaders have access to critical company resources from payroll and operating lines of credit, to all the company passwords. They establish who has company signatory authorization and delegate other operational decisions and essentials such as maintaining relationships with customers, lenders and investors. A good plan also helps get the most out of people before they assume the role, making for a stronger company.

The succession plan also contains strategy for hiring and grooming new talent​ to meet projected company needs. It is also periodically updated, keeping it in line with industry developments, creating personnel redundancies that position your company to flourish, no matter what.

In times of uncertainty, internal and external messaging plans help complete the picture, establishing communication protocols for getting the message out internally, and a PR plan for getting word to those outside the company. Together, they help project, promote, and maintain stability.

Too often, small and middle market companies don’t address succession planning. But the President’s recent hospitalization serves as a warning: Major disruption could be just around the corner. Leaders don’t like giving up control, even temporarily. But none of us are invincible and the fate of your company and the clients and consumers who depend on it, affects more than just yourself. If you don’t already have one, put your succession plan in place now. You owe it to your company, your clients, your family, and yourself.

James S. Cassel is co-founder and chairman of Cassel Salpeter & Co., LLC, an investment- banking firm with headquarters in Miami that works with middle-market companies. or via LinkedIn at

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Q3 2020: Tech Deal Report

How to land an entry-level role at a major investment bank, according to industry veterans and recruiters

October 7, 2020
By Francesca Di Meglio

Matthew Ting followed the traditional path into investment banking.

He attended a finance-focused school, Western University in Canada, which places 20 to 30 graduates into US investment banking jobs annually (out of 600 or so students), and excelled academically, earning his BA in business administration in 2015. He was the president of the largest student-run investment club in Canada and held multiple finance internships before undergoing full-time recruiting during his senior year — as a summer analyst at Auxo Management in Toronto and at SilverLake in Menlo Park, California, and as an analyst at Evercore in New York and associate at Providence Equity Partners.

Today, Ting is the owner of Peak Frameworks, a firm dedicated to helping people get careers in investment banking with locations in New York and Toronto.

While Ting’s career journey is one good way to land yourself a role at a top- notch investment bank, there are alternative routes for those who don’t want to or can’t follow the same route.

An MBA is often the best way to help bridge the gap between past experience and a job in investment banking. But sometimes you can forgo the additional degree if your previous jobs have provided you with a unique skill set.

For example, James Cassel, now the chairman and cofounder of Miami-based Cassel Salpeter & Co., an independent investment banking firm that provides advice to middle-market and emerging growth companies, practiced law and specialized in corporate securities for 17 years before breaking into investment banking.

As a securities lawyer, Cassel always conducted deals, but he noticed his investment banking counterparts were making more money and hoped a switch in careers would mean fewer hours. (He soon realized, he said, that both securities lawyers and investment bankers work many long hours.) But this is what drove him to seize the opportunity presented to him by one of his investment banking clients. The skills he had as a securities lawyer were transferable and made for a quick learning curve, Cassel said.

“My story is totally different than most,” he said.

Here’s how he and other investment bank veterans suggested landing a coveted role at a major company.

Understand what roles are out there and the process for landing them

For starters, you should understand the tradition of earning an entry-level job as an analyst or associate at a top investment bank.

The overwhelming majority of hires come from the very best business schools. Alumni from those schools who now work for the firm recruit students — either undergraduates or MBAs — at their alma mater. There are phone screenings, events, and in-person interviews that allow for vetting.

In the last stage of the process, recruits go through “super day,” where they head to the organization’s headquarters and interview with a number of people to determine once and for all if they’re a good fit.

Next, you should navigate the different roles at investment banks and determine the one you’re most interested in pursuing. Entry-level jobs include associates and analysts, but the categories go even deeper.

Steven Shreve, professor in the master of science in computational finance (MSCF) program at Carnegie Mellon University, said applicants should understand that investment banking is a specific division of banking related to the creation of capital for other companies, governments, and other entities. He added that the part of investment banking that assists firms in mergers, acquisitions, bond issuance, and initial public offerings requires comprehension of different financial instruments.

“Much of that work is relationship-based, although calculation of the value of instruments does play a role,” Shreve said. “However, these calculations require less mathematical knowledge than those required in sales and trading.”

The sales and trading side of investment banks begins on the trading floor, where traders monitor prices and use sophisticated algorithms based on mathematical models and statistical analysis to make trading decisions, he said. Unlike assisting other firms, sales and trading is primarily a quantitative task, although there’s some interaction with customers.

“A person who is interested in mathematics/statistics/computer science can come late to finance and still have a great career in sales and trading,” Shreve said. “In the mergers, acquisitions, etc., the proper preparation is a degree in finance.”

To get more information, Shreve suggested reading Peter Bernstein’s book “Capital Ideas: The Improbable Origins of Modern Wall Street,” which he said provides a good history of how the industry arrived at this “present, highly mathematical state of affairs in finance.”

Another possibility is asset management, which is about managing customers’ money. Traditionally, investment decisions were made based on fundamental research about individual firms, but increasingly they’re made based on statistical analysis of market data, Shreve said. For asset management, the appropriate preparation has shifted in the last 20 years from finance to mathematics and statistics, he added.

Research the companies that interest you by reading up and networking

Applicants should then research each bank they plan to apply to to understand the culture and how they could fit into it. You should read about the bank in the news or on other websites, reach out and talk to alumni or current employees, and attend networking events. You can even ask for an informational interview, which used to take place over coffee but are more likely happening over Zoom nowadays.

“Don’t make the mistake of thinking that every firm is the same,” said Matthew Spencer, a human resources veteran in the investment banking space who’s worked at Houlihan Lokey, where he oversaw global talent management strategies including recruiting, training, professional development performance management, and people analytics.

Spencer entered Houlihan Lokey, a leading global investment bank, as an associate right after graduating from the MBA program at University of Southern California Marshall School of Business in 2007. Before becoming the chief human capital officer at the firm, he rose to senior vice president in investment banking.

His path into investment banking, however, began with on-campus recruiting. Spencer, like most MBA students, got to know the culture of firms through summer internships, which are usually a pipeline for future employment. But you should go further to understand the differences among banks.

“Take the time to prepare for each interview,” Spencer said. “Understand where a firm sits in the broader industry and research each firm to understand the type of work they do. They all have varying specialities, service offerings, and cultures.”

“Networking is also hugely important,” Spencer, who’s also the cofounder and CEO of Suited, an AI-powered recruiting network designed to help candidates from all backgrounds access highly sought-after opportunities in the financial services space, added. “Candidates interested in securing analyst roles should feel encouraged to reach out to upperclassmen who have already secured summer internships. Additionally, cold emails go a long way in this field. Research school alumni who work at investment banks and don’t be afraid to ask them for some of their time. However, don’t use these calls to ask about specific job opportunities, but instead learn from their experiences and ask questions about their job journey.”

Build strong relationships in internships by showing face

The coronavirus crisis has changed recruiting and training. Many in-person activities have gone online. Often, full-time job offers are a result of successful summer internships, Cassel said. Online internships require additional effort on the part of both interns and their supervisors, he added.

“It’s a real challenge to vet someone and develop a relationship online,” Cassel said. “It’s hard to do. We’re learning to adjust because we have no choice.”

He suggested interns request Zoom calls to help develop a rapport with employees and show their interest and determination. You need to stand out to those hiring, Cassel said.

“It’s not enough to put out quality work because that’s expected,” he said.

If you snag an online appointment, be on time, dress appropriately, consider what’s in the background, and ask for help and feedback, Cassel added.

Amid the pandemic, most banks are now conducting all their internships and networking online, and this could change the recruiting process.

“Even if you don’t think you have the right ‘background’ for a role, you should indeed apply anyway,” said Christopher Temme, CFO of crypto exchange bitFlyer USA, who previously worked as an analyst at Goldman Sachs in Tokyo and an associate at Citi NY. “Since banks are now competing against all industries to attract top talent, they’ve cast a wider net to find these candidates.”

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Boeing Job Moves Take Aim At Unions

Zenger News
October 2, 2020

Boeing announced plans to shift its remaining 787 Dreamliner production from Washington State to South Carolina—wounding the nation’s largest aerospace union.

Boeing said it will make the mid-2021 move to “preserve liquidity” and “enhance efficiency and improve performance for the long-term,” in a statement.

Employee representatives say it’s all about cutting union jobs.

“It’s a very anti-union company,” said Bill Dugov, communications director for the Society of Professional Engineering Employees in Aerospace (SPEEA), which represents 11% of Boeing employees. “They’ve spent millions just battling our unions on organizing efforts. Their official stance from what they’ve told us is they’ll work with unions where they have to.”

Approximately 35% of Boeing’s 162,000 employees are union members. The U.S. has 7.5 million private sector union jobs total, according to the Bureau of Labor Statistics. South Carolina is a so-called right-to-work state that doesn’t allow employment to require union membership. Boeing opened that second 787 plant in 2009.

“Boeing can’t stand the idea that those who design and build the aircraft, who are the heart and soul of the manufacturing process, have rights,” said a statement from the International Association of Machinists and Aerospace Workers (IAMAW), which represents 22% of Boeing employees, including production personnel in Washington.

Boeing hasn’t released estimates of potential job losses at its Everett, Washington location, but they could be significant. But Dugovich notes the Everett plant also produces the 747, 777, and 767 aircraft, so some work will remain.

Many have expected the move. “Economic development professionals in Seattle and Everett, when they say their prayers at night, say, ‘Please let us keep Boeing for another year,’” said John Boyd, principal of location consultancy The Boyd Company, which has frequently done work for Boeing. “This has not been that big a surprise for people in the aerospace world.”

“Currently, Boeing has about 7,000 employees at the site,” Boyd added. “We would expect a small number of management and technical workers to relocate, but we don’t expect a large number of other workers to move down there. A good [savings] estimate would be about 20% to 25% in labor costs.”

Boeing has face rough fiscal times, not just from the pandemic’s impact on global travel and airlines, but also self-inflicted ongoing issues with its 737 MAX and the two fatal crashes it was involved in. The company lost $4.3 billion in the first half of 2020 as its most recent financial reports revealed.

“I think, unfortunately, because of the MAX issues, they’ve taken up residence in the bull’s eye,” said Mark Dombroff a partner at law firm Fox Rothschild who concentrates on the aviation and transportation industries. “That causes these kinds of questions to come up.”

Ironically, the South Carolina plant has seen its own quality problems, resulting in the grounding of eight 787s so far. As Boyd notes, relocation has a “hidden cost”: the loss of institutional knowledge and developed skills. That could be an issue for Boeing with the new 787 manufacturing quality problems.

“They’re going to disguise [the move] like production problems in South Carolina and they need to kind of beef it up, but I think it’s just a move away from Everett and more moving into non-union places,” said Joseph Smith, aviation director at mid-market investment banking firm Cassel Salpeter & Co.

“Boeing doesn’t respect that our members have the ability to stand up, voice concerns and attempt course correction of poor management decisions to protect the integrity of the airplanes and the industry,” the IAMAW said in its statement.

One indirect beneficiary could be employees for the Federal Aviation Administration.

“If there’s more production taking place and more airplanes being build, the FAA has to make its own manpower considerations,” Dombroff said.

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Westchester General Hospital acquired by Sanitas

  • Background:Westchester General Hospital, Inc. (“Westchester”), founded in 1967 and based in Miami, FL, is a 125-bed, family-owned acute care hospital providing quality, patient-centered care.  Westchester also helped develop a graduate medical education program that has trained hundreds of physicians who serve across the nation.
  • Cassel Salpeter:
    • Served as financial advisor to the Company
    • Conducted a robust sales process, identifying and contacting over 100 strategic and financial parties
    • Successfully identified an international buyer that was looking to expand their footprint in Florida
  • Challenges:
    • Distressed operations with negative cash flow
    • Ensuring a smooth transaction while dealing with the negative impacts of the COVID-19 pandemic
    • Navigating the ever-changing Paycheck Protection Program  and CARES Act guidelines relating to mergers and acquisitions
  • Outcome: In October 2020, Westchester was acquired by Sanitas USA, Inc. a subsidiary of Keralty SAS, an international health enterprise leader in patient-centered care and health outcomes.

How dealmakers at an investment banking firm are winning new business and preserving existing revenue

By Ben Harrison
October 1, 2020

We all know that if there are fewer opportunities in the market, there is greater competition. Every single capital markets firm globally needed to contend with this fact when the Covid-19 pandemic hit. I watched as thousands of deal professionals scrambled to win new business and preserve existing revenue. For Scott Salpeter, president of Miami-based investment banking firm Cassel Salpeter, it meant integrating technology and remote capabilities into his team’s day-to-day workflow. The result? A single source of truth everyone in his firm could rely on for accurate, real-time information to support decision-making.

“Data is more important than ever,” he said. “The pace of change has dramatically accelerated; industries are being transformed. What was true yesterday, might not be true today, and that can be a challenge when we’re advocating for our clients’ best interests.” For many investment bankers and M&A advisors trying to stay informed in an ever-changing economic and geo-political climate, having access to data isn’t enough. They require a full, 360-degree picture of the client they are serving , the factors affecting the industries in which they operate, a historical view of transactions in that market, and so much more.

These needs and challenges are how I got to know Salpeter, his team of bankers, and thousands of other people who serve as trusted advisors to business owners and executive teams just like them all over the world. Without technology that centralizes a firm’s propriety data alongside third-party data, transaction advisory and other deal professionals dedicate time towards tedious and administrative tasks that could be better spent face-to-face (even on Zoom) with their clients.

Specifically for the team at Cassel Salpeter, the implementation of an industry-specific CRM solution (like DealCloud) across its staff of 14 created a central place for all client, deal, pipeline and relationship data. This allowed the entire team to be better informed, more accountable, and more productive on behalf of its clients.

“When the pandemic hit and we were all forced to work from home, I felt confident that our team had access to the data and tools they needed to support our clients,” said Salpeter. “Other firms that had not made investments into internal tools and technologies have to be struggling with communications and processes across their firms.”

With platforms like DealCloud, a project weekly status report that used to take Scott’s team hours to generate, now takes less than 15 minutes. His team no longer relies on spreadsheets and email. Data is no longer siloed across multiple databases. Cassel Salpeter was even able to create notifications and automate workflows, ensuring nothing slipped through the cracks. Now, Cassel Salpeter has an advantage over the competition.

Bankers like Scott are leading the way for their firm by being squarely focused on making Cassel Salpeter better, more efficient, and ultimately, more essential to its clients no matter what the future holds.

If you would like to learn more about how DealCloud can help your firm become essential to your clients, visit

DealCloud, an Intapp company, provides a single-source deal, relationship, and firm management platform to enable over 900 clients to power their deal-making process. We offer fully configurable solutions purpose-built for the complex relationships and structures of private equity firms, investment banks, private/publicly traded companies, debt capital providers, and other investors.

Ben Harrison is co-founder and chief revenue officer for DealCloud, which he developed after realizing the needs of alternative asset managers were not being met by one-size-fits-all CRM platforms. Harrison has 15 years of experience in capital markets and holds an MBA from the University of North Carolina Kenan–Flagler Business School.

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