Report: Health IT Market Has Significant Opportunity For Smaller, Innovative Companies

The health IT market remains open enough to provide opportunity for innovative startups that are focused on addressing a particular issue within the industry, according to a report from investment bank Berkery Noyes.

The report's analysis of merger and acquisition activity in the first three quarters of 2013 and reveals while transaction volume has increased 7 percent since the second quarter of this year, total transaction value fell 68 percent, from $6.3 billion to $2 billion. Overall year-to-date transaction value is down 13 percent as compared with last year.

This result points to more transactions involving smaller companies, and suggests opportunity for smaller companies that catch the eye of larger companies or investors. "The healthcare market remains highly fragmented, with lots of opportunities for entrepreneurs with unique ideas looking to start companies that solve important pain points along the healthcare continuum, said Tom O'Connor, managing director at Berkery Noyes in a press release.

"Large strategic buyers are also looking to acquire unique content/software solutions that are solving challenges in the healthcare market and are growing rapidly, offering exit opportunities for entrepreneurs at very attractive prices," he said.

More Articles on the Health IT Market:

McKesson Automation to be Acquired by Private Equity Firm
Epic, QlikTech Announce EMR Technology Agreement
CareCloud Hints at 2014 IPO

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