Reviving healthcare M&A: a mid-year overview
The following report developed by Baker Tilly Capital, LLC provides an update on the healthcare mergers and acquisitions (M&A) market in the first half of 2023. The report includes an overview of the market performance, M&A activity, transactions by segment and buyer, and U.S. middle market M&A activity.
Here are some key takeaways from the report:
- The healthcare M&A landscape in H1 2023 was marked by market optimism, as the U.S. markets experienced significant growth with major indexes like the S&P and Nasdaq posting substantial gains, despite ongoing interest rate hikes by the Federal Reserve
- Healthcare sectors demonstrated a robust recovery during H1 2023. Acute care, home health, long-term care, and non-acute care sectors all reported notable performance increases, while managed healthcare saw a decline
- The number of healthcare M&A transactions declined by 18% in H1 2023. In line with the decline in volumes, total healthcare deal value also declined from 10.8% from $93.7 billion for H1 2022 to $83.6 billion
- A notable acquisition stood out during H1 2023 showcasing the sector’s dynamism
- The middle market segment faced challenges in healthcare M&A during H1 2023, with a 21.5% decrease in transactions totaling $13.1 billion
