Digital Health and Fertility Targeted by Venture Capital
Venture capital (VC) is playing an increasing role in health care as companies are desperate for the resources, expertise and funding that VC firms provide. According to SVB Financial Group’s annual Healthcare Investments and Exits Report, healthcare venture capital funding totaled nearly $22 billion in 2022, and over the last 24 months, there has been more than $50 billion in newly raised health care funds. This falls short of the $28 billion raised in 2021, which was a record. SVB’s report also noted that while there was a dip in funding in 2022, VC fundraising and investment remained strong throughout the year as there were more healthcare investments than in 2020. Due to public market... Read More »
Private Equity Leads Physician Medical Group M&A Activity in 2022
According to data captured in the LevinPro HC database, 2022 was a historic year for the Physician Medical Groups (PMG) sector with 607 deals, an approximate 33% increase from 2021 when 457 PMG transactions were announced. Private equity firms, and/or their portfolio companies, dominated the PMG sector, accounting for 423 of the transactions last year, or approximately 70%. The most active subsectors were dental with 226 deals (37% of the transaction total), eye care with 87 transactions (14%) and orthopedic with 35 deals (6%). From the previous year, dental increased 151% from 90 transactions, eye care decreased 11% from 98 deals and orthopedic increased 25% from 28... Read More »
Cardiovascular Associates of America’s 2022 Activity
The cardiovascular specialty surged in 2022 with 14 announced deals, a significant increase from the year before when four transactions were reported. While the specialty grew a significant amount compared to its past performance, it still only accounts for a small percentage (2.3%) of Physician Medical Groups (PMG) M&A activity. Several months ago, we discussed why the cardiovascular market is on the rise, revolving around the fact that the American population is aging and facing age-related cardiovascular conditions such as coronary artery disease, atrial fibrillation and heart failure. According to the Centers for Disease Control and Prevention, heart disease is the leading... Read More »
Private Equity Targeting Industry Segment That Maintains Strong Performance: Worker Shortage Drives Healthcare Staffing M&A Toward Record High
Acquisitions of healthcare staffing companies in 2022 are approaching last year’s record total as they work to fill positions amid a severe worker shortage that shows no signs of ending. According to the LevinPro HC database, investors and dealmakers have announced 31 healthcare staffing deals this year through November 14. This compares with a record-high 35 transactions in 2021. These totals are in sharp contrast to the 13 deals posted in 2020 and 17 in 2019. As has been the case with other healthcare segments, private equity has targeted the healthcare staffing subsector. So far in 2022, 15 of the 31 (48%) acquisitions have come from private equity firms and/or their portfolio... Read More »
The Healthcare SPAC Market
For the past two years, the healthcare M&A market has seen a surge of deals involving SPACs, or special purpose acquisition companies created solely as a vehicle for emerging companies to go public. These deals, called a de-SPAC transaction, seem to be surfacing once a week in the healthcare market, a trend not unique to this industry either. Here’s how they start: a sponsor company or investor, sometimes a private equity firm or investment firm, creates a public shell company and then raises funds and capital, called a private investment in public equity, or PIPE, under the idea that it will use those funds to find a target private company. Investors can buy into the PIPE at a low... Read More »Schedule a demo
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