Option Care Health’s Q3 2022 Earnings Highlights
On Thursday, October 27, 2022, Option Care Health, Inc., the nation’s largest independent provider of home and alternate site infusion services, announced financial results for the third quarter ended September 30, 2022. The Bannockburn, Illinois-based company reported: 14.5% increase in net revenue from $891.9 million in Q3:21 to $1.02 billion in Q3:227.4% increase in gross profit from $203 million (22.8% of net revenue) in Q3:21 to $218 million (21.4% of net revenue) in Q3:229.3% increase in net income from $35.5 million ($0.20 per share) in Q3:21 to $38.8 million ($0.21 per share) in Q3:229.8% increase in adjusted EBITDA from $78 million (8.7% of net revenue) in Q3:21 to $85.6 million... Read More »
Buyer Discipline Emerging in Healthcare M&A
On October 21, we attended McDermott Will & Emery’s HPE New York event for a morning of panel discussions and networking. Much of the focus was on private equity’s healthcare M&A strategy amid higher interest rates, a pricing disconnect between buyers and sellers, and other headwinds in the industry. Right off the bat, the first panel posed a question to the audience asking what was causing a drop in deal activity. Quite clearly, the top two answers were, “frozen credit markets” and “pricing too high,” with “wage inflation” another major factor in how buyers approached potential deals. Higher wages may very well keep some PE firms from buying service-intensive healthcare businesses... Read More »
Home Health M&A Market Slowed in Q3, But Big Transactions Kept Deal Values High
The first half of 2022 revealed a shift away from the pandemic-fueled activity in the Home Health & Hospice (HH&H) M&A market seen during 2020 and 2021. This trend has carried through to the third quarter of 2022, which included 25 deals, a 43% drop from 2021’s third quarter when there were 44 announced transactions in the sector. Through the end of the third quarter this year, there have been 83 transactions announced in the HH&H sector, which covers the categories of home health, home hospice, palliative care, durable medical equipment, respiratory home care, geriatric care management, personal care, home aides and multi-service providers. Deals this year have fallen 24%... Read More »
Healthcare M&A Activity Remained Strong in Q3:22, According to Market Data Captured By Irving Levin Associates, LLC
Healthcare merger and acquisition activity remained extremely active during the third quarter of 2022, with 734 publicly announced deals, according to new data captured by Irving Levin Associates on its LevinPro HC platform. While some sectors, like Hospitals and Managed Care, had a significant increase in activity, others like Medical Devices experienced a slowdown. Transaction volume in Q3:22 remained virtually the same with deal totals in Q2:22, but increased by nearly 20% compared with the third quarter in 2021. Healthcare M&A deal value totals revealed a slight increase from $57.74 billion in Q2:22 to $58.2 billion during Q3:22. The total disclosed dollars spent fell... Read More »
Behavioral Health M&A Market Slows in Third Quarter
The Behavioral Health Care (BHC) sector appeared to be on the up-and-up since breaking records in deal totals in 2021 when there were 124 transactions announced. So far, during 2022, there have been 79 deals announced as of September 30, 2022, falling just short of the 83 deals announced during the same 2021 period. Although, pre-2021, this would be a strong showing for this market, it pales in comparison to the incredible growth we’ve been seeing lately in the BHC sector, which started to slow near the end of the third quarter. There were 23 BHC deals announced during Q3 of 2022 across nine different subsectors, including substance use, autism & I/DD services, psychiatric/clinical... Read More »Schedule a demo
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