Diagnosis reveals strong private investment
The following report developed by Baker Tilly Capital, LLC provides an update on the healthcare mergers and acquisitions (M&A) market in the second half of 2022. 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:
- Private practice healthcare has remained a focus for private equity investors in the healthcare industry, despite a slowdown in healthcare M&A in H2 2022
- The healthcare industry is transitioning to a value-based care model, which emphasizes patient outcomes rather than the volume of services provided
- Despite the current interest rate environment and higher cost of capital for interested buyers, private investment in the healthcare industry is expected to remain high
- U.S. markets experienced volatility in the back half of 2022, with healthcare sector stocks continuing to decline through the remainder of the year
- Managed healthcare outperformed the S&P 500 in the first half of 2022, largely due to insurance policy providers' ability to manage margins during inflationary periods
- U.S. healthcare M&A activity decreased in the second half of 2022 compared to the same period in 2021, with fewer reported transactions and a lower aggregate deal value
