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 »
What’s Next for eHealth?
The eHealth market is as active as ever. Digital health companies were in hot demand throughout 2020, with 246 deals on the books for last year, an annual record for the sector. In the first quarter of 2021, we already have 102 deals, according to search results in our Healthcare Deals Database. In 2020, it was all about virtual care and telehealth, exemplified by eHealth deals such as Teladoc Health, Inc.’s (NYSE: TDOC) $18.5 billion acquisition of Livongo Health, Inc. or the $1.35 billion reverse merger of UpHealth and Cloudbreak Health with Oaktree Acquisition Corp., a special purpose acquisition company. Much of the demand in eHealth was due to the Covid-19 pandemic, but other... Read More »
Healthcare M&A Results Q1: One for the Record Books
Rebound might be an understatement. After the healthcare M&A market slowed down for most of 2020 due to the pandemic, deal activity has roared back in the first quarter of 2021, with a staggering 596 deals on the books, a 17% increase compared to the 509 deals announced in Q4:20, according to results in Healthcare Deals Database. And with quarterly earnings on the way, the number of deals will easily break 600. In terms of disclosed spending, dollar volume sits at a healthy $89 billion, a 27% drop compared with Q4:20, but the last quarter of the year is always full of mega-mergers, so don’t just take that number at face value. It’s a strange endeavor comparing healthcare M&A... Read More »Schedule a demo
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