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Thank you for visiting HealthcareBanker.com a news aggregator of middle-market mergers and acquisition activity in the healthcare industries. This site addresses investment banking topics dealing with M&A, Capital Raising, Borrowing/Lending and other Corporate Development and Finance activities within the Healthcare Services, Healthcare IT, Medical Device, and Life Science industries.

Monday, April 11, 2016

Now That ACA Is Here To Stay Will Healthcare M&A Slow Down


Health Care Deals Thrive, but Dealmakers Predict Significant Slowdown in Future Activity

(from M&A news)

Expectations for M&A in the health care industry have plummeted over the last year, according to Mergers & Acquisitions’ Mid-Market Pulse (MMP). Dealmakers polled in March gave the sector a 3-month composite score of 53.2 and a slightly higher 12-month composite score of 59.8. (See related chart).

A year ago, they gave health care a 3-month score of 91.2, the highest ranking ever received on the MMP for any sector. As recently as August, transaction pros gave health care a 3-month score of 78.1. In recent years, consolidation in the sector has been driven by the Affordable Care Act, as providers have been under pressure to achieve cost efficiencies. Over time, the impact of ACA is expected to lessen. Some poll respondents expressed uncertainty about the future of the ACA, due to the upcoming presidential election.

The MMP is a forward-looking sentiment indicator, derived from monthly surveys of approximately 250 executives and published in partnership with RSM LLP (formerly McGladrey).

2 comments:

  1. Recent analysis of healthcare M&A transactions in Q1 2016 indicate that market activity is still high in this sector with potential to outpace the records achieved in 2015 in terms of volume of deals and dollars spent. See report from Bloomberg BNA;

    http://www.providenthp.com/wp-content/uploads/2016/04/BNA-Health-Law-Reporter-4_21_16.pdf

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