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Reshaping healthcare M&A: 4 insights

Mergers and acquisitions agreements have become a tactical tool in helping healthcare companies adapt and thrive in the fast-changing market — there were 570 deals for U.S. healthcare targets in 2017, the second-highest total on record, according to a recent report from West Monroe Partners.

For the report, titled "Reshaping M&A: How Competition and Technology Are Changing the Game," West Monroe, in partnership with Mergermarket, surveyed 100 market practitioners and analyzed trends related to healthcare M&A.

Here are four insights from the report:

1. Respondents noted five main drivers for healthcare M&A: attractive margins, aging population, growing demand for care, expansion of healthcare subsectors and competition for assets.

2. Industry conditions have reshaped the healthcare M&A landscape, resulting in a shortage of attractive targets and increased competition, among other factors.

3. The majority (73 percent) of dealmakers surveyed said they plan to pursue alliances, partnerships and joint ventures within the next 12 to 18 months.

4. Roughly 93 percent of deal-makers said technology has added to the complexity of deal-making, with 36 percent of respondents citing the fast pace of change in technology as one of the biggest challenges in healthcare.

To access the report, click here.

More articles on transactions and valuations:
U of Iowa Health Care asks board for $7.5M to exit alliance, dissolve ACO
Virtua Health to purchase 2-hospital New Jersey system
3 recent healthcare partnerships and transactions

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