Growth trends during the quarter saw mixed outcomes, with total deal volume declining from the first quarter of 2018, but increasing from one year prior.
Here are five findings from the report:
1. An estimated 255 mergers and acquisitions deals were announced during the second quarter of 2018 — a 7.3 percent decline in deal volume from the first quarter of 2018. Total deal value declined by 66.1 percent from the prior quarter and 50.7 percent from the prior year to $24.6 billion. However, analysts suggest the drops in deal value are a function of megadeal activity from comparable periods.
2. Healthcare industry megadeals continued in the second quarter, with private equity firm KKR’s proposed $9.9 billion acquisition of Nashville, Tenn.-based Envision Healthcare — the third largest transaction since 2016. PwC experts suggest more megadeal-making “could be forthcoming.”
3. The majority of deals during the second quarter took place in the long-term care division (104 deals). M&A transactions among physician medical groups constituted the largest subsector in terms of deal value ($12.2 billion) and accounted for 49.4 percent of total deal value during the quarter.
4. Several private equity M&A transactions priced at more than $1 billion were announced during the second quarter. The deals include:
- KKR’s $9.9 billion acquisition of Envision
- Fresenius Medical Care’s $2.15 billion divestiture of Sound Inpatient Physician, a Tacoma, Wash.-based acute care services organization
- Humana and a consortium of private equity firms’ $1.4 billion acquisition of Mooresville, N.C.-based hospice operator Curo Health Services
5. No health services initial public offerings have been announced in 2018. There were no IPOs announced in 2017, and only one each in 2016 and 2015.
To access the full report, click here.
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