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Overall healthcare M&A deal value drops 35% in 2016: 7 findings

Global management consulting firm Bain & Co. released its latest report examining trends in healthcare private equity and corporate mergers and acquisitions.

Here are seven findings from the report.

1. The overall deal value of healthcare M&A, which includes global and coporate deals, fell 35 percent in 2016.

2. Bain & Co. attributed the decline in large part to lack of corporate mega-mergers.

3. Total disclosed value for healthcare private equity deals reached $36.4 billion in 2016, the best year since 2007, according to the report. This was driven in part by two mega-deals — the $7.5 billion investment in MultiPlan and the $6.1 billion acquisition of TeamHealth.

4. The company said nine of the top 10 global healthcare PE deals last year involved U.S.-based assets.

5. In 2016, PE investors focused on category leaders and "healthcare-light" assets, such as healthcare IT and contract services, Bain & Co. said. This was primarily due to regulatory and reimbursement uncertainty.

6. PE investors also focused on consortium deals last year, in which investors collaborate to acquire large assets, according to the report.

7. Three of the top four global healthcare PE deals in 2016 were public-to-private transactions.

Read the full report here.

 

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