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 »
Hospital M&A Market Flash Update
Investment activity in healthcare is extremely healthy this year, with deal volume expected to break records. However, the hospital market seems to be in a different spot, based on year-to-date numbers. Through Q3, there have been 42 announced transactions, compared with 70 total in 2021. Deal closures have been slower, most likely due to market headwinds facing health systems and providers, such as labor shortages. There has also been stricter scrutiny of mergers and acquisitions from the Federal Trade Commission (FTC). The regulatory agency has sued to block several mergers, such as the deal between HCA Healthcare and Steward Health Care System for a sale of five hospitals in Utah and... Read More »
Physician Medical Group M&A Activity Rises 5% in Q2:22
M&A activity in the Physician Medical Group (PMG) sector rose in Q2:22, reaching 142 publicly announced deals, which is a 5% increase from Q1:22 that saw 135 deals and a 35% increase from Q2:21 that saw 105 deals, according to LevinPro HC. This indicates that the PMG M&A market is not only stable but growing. However, while deal quantity shot up, disclosed spending was down by a fair amount. In Q2:22, disclosed spending barely reached $386 million, which is a major reduction from the previous quarter that had more than $1.5 billion in total disclosed sale prices. It is even a decline from Q2:21 that saw $489.2 million in announced prices. The largest PMG deal of the quarter was... Read More »
The Dust Settles: Healthcare M&A Activity Simmers Down
After a strong start to the year, deal activity has finally cooled off. During February, there were 135 healthcare deals, a 53% decrease from January 2022, which had a record-breaking 290 deals. Such a drastic drop is to be expected. The market naturally goes into an ebb and flow, and historically, January is always much busier than February. Additionally, the deal total last month wasn’t far off from what we saw in February 2021, when there were 142 deals across all sectors. The busiest sector during February 2022 was Other Services, which had 32 announced transactions across a wide range of sectors, including medical office buildings, ambulatory surgery centers, contract research... Read More »
Another Avalanche: January Deal Volume Breaks Record
The new year is already off to a strong start. Deal activity in January hit a record high with 352 deals across all sectors, beating out the previous record of 293 deals in January 2021. An impressive feat, considering the many headwinds currently facing the market. We expect this number to continue to rise as more January deals continue to be announced. 2021 was a record-breaking year for deal activity, with 2,599 deals on the books so far. However, if January’s strong showing foreshadows the rest of the year, 2022 may shatter the prior year’s record. The busiest sector during January 2021 was Physician Medical Groups (PMG), with 77 announced deals, making up 22% of all deals across... Read More »Schedule a demo
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