Financial Buyers Announce 59 Deals in Q1:17
Financial buyers, which include real estate investment trusts and private equity firms, are not the dominant players in the health care M&A market. Their participation depends on many factors, with valuations being an important determinant, (see chart below). Middle-market private equity firms, in particular, have had a hard time getting into and then winning auctions for health care entities in the past few years, as strategic buyers have outspent or even pre-empted auctions. In the first quarter, financial buyers accounted for 15% of the deal volume, with 59 deals, which is slightly lower than the previous four quarters. The first quarter featured eight deals that topped the $1.0... Read More »
May Day! Hospital Mega-Mergers Ahead
Hospital merger and acquisition activity took a breather in the first quarter of this year. The 19 deals announced then represented a 17% decrease compared with the 23 deals announced in the fourth quarter of 2016, and a 30% decrease year over year. Readers who saw headlines in April regarding a rush of hospital mergers in the first quarter, according to data published by Kaufman Hall, should know our differing results are due to methodology. We do not report hospital mergers or acquisitions when the announcement involves signing a letter of intent, when many deals fall apart soon after. Our data derives from the more solid step in the process, when both entities have reached a definitive... Read More »Health Care Deals Slide in April 2017
April usually doesn’t feel like February, at least, weather-wise. As far as healthcare mergers and acquisitions go, however, deal volume in April 2017 (103 deals) feels a lot like February’s deal volume (102). The chart below shows the clear winners and losers in April 2017. Deal volume was down 29% compared with the previous month (March, 145 deals), and slid 12% compared with the year before (April 2016, 141 deals). Healthcare services deal volume accounted for just 50% of April’s preliminary total. The services sectors typically account for higher percentages than the technology sectors (although that trend is reversed when it comes to dollar volume). The services side... Read More »Q1:17 Hospital Deals Dwindle
Mergers and acquisitions in the Hospital sector suffered in the first quarter of 2017, as President Trump took office and the Republican-led Congress vowed to repeal and replace the Affordable Care Act. Hospitals and health systems felt the uncertainty as deal volume slipped 17% to 19 transactions versus the previous quarter, and dropped 30% year over year. This quarter’s deal volume represents 23% of the 81 hospital transactions announced in the previous 12 months. (N.B.: We record hospital deals when they reach the definitive agreement stage, not when a letter of intent is signed.) Source: HealthCareMandA.com, April 2017 Four transactions disclosed a price, for a combined total of only... Read More »
Air Methods Corp. Flies to American Securities
Air Methods Corporation (NASDAQ: AIRM), a global air medical transportation company, has been on the acquisition trail since the late 1990s, announcing 12 deals targeting smaller air ambulance operators. Now it’s a takeover target itself, thanks to activist shareholder Voce Capital Management LLC. Voce Capital, and its managing director J. Daniel Plants, had been calling for Air Methods management to put the company on the block as far back as 2015. In February 2017, the investment firm launched a fight for four board seats and publicly criticized AIRM’s financial returns and “a multi-year syndrome of operational, strategic and governance failures.” Air Methods... Read More »Schedule a demo
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