Sponsored by VMG Health | info@vmghealth.com | 214.369.4888

Healthcare M&A Deal, Dollar Volume Dives in 3Q

The number of merger and acquisition transactions in the healthcare industry declined by nearly 10 percent in the third quarter of 2012 compared with the third quarter of 2011, representing a 35 percent drop in dollar volume compared with the second quarter of 2012, and a 36 percent drop compared with the third quarter of 2011, according to an Irving Levin Associates report.

The entire healthcare industry had 216 deals worth $38.1 billion in the third quarter of 2012. There were 255 deals in the second quarter of 2012 and 239 deals in the third quarter of 2011. While the dollar volume saw significant drops, deal volume the third quarter of 2012 only dropped 15 percent compared with the second quarter of 2012, and 10 percent compared with the third quarter of 2012.  

The decrease in merger and acquisition activity was mostly centered in the technology segment, with medical devices, pharmaceuticals and biotechnology all posting declines in transaction volume as well as dollar volume.

However, hospitals had only 11 deals in the third quarter of 2012 compared with 23 deals in the second quarter of 2012 — a 52 percent decline — and 16 deals in the third quarter of 2011 — a 31 percent decline. The dollar volume for M&A deals involving hospitals was $121.9 million.

Physician groups had eight deals in the third quarter of 2012, which is a 62 percent decline compared with the 21 deals in the second quarter of 2012, and a 71 percent decline compared with the 28 deals in the third quarter of 2011.

More Articles on Healthcare M&A:

Healthcare IT Funding, M&A Strong in 3Q With 74 Deals Worth $3.4B
M&A Volume in Healthcare IT Market Rises 19% in 3Q
Top 3 Drivers for Hospital M&A Activity

© Copyright ASC COMMUNICATIONS 2021. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Featured Whitepapers

Featured Webinars