Healthcare M&A decelerated in 2016 and 2017 after a record-setting year in 2015, however, industry activity remained healthy over the last two consecutive years and into 2018. In Q1 2018, 368 deals were completed, accounting for 9.4% of M&A deals and totaling $53.5 billion. The median healthcare deal size was $54.6 million in 2017, compared to $38.5 million across all sectors. Dealmakers are becoming less focused on public policy and more attuned to the shifting competitive landscape. Influencing factors include large partnerships eliminating the need for intermediaries in the healthcare supply chain, regulatory changes in major markets, gene therapy, robotics and machine learning. Furthermore, Carleton McKenna & Co. is seeing strong demand by financial sponsors, as fragmented retail healthcare companies such as dental offices and urgent-care clinics are becoming common add-on targets for private equity firms.
To review the full report please download, “Healthcare M&A Q1 2018”