Healthcare M&A in year-end rush

BVWireIssue #168-3
September 28, 2016

There will be a race to finalize healthcare transactions before the end of the year, with over 100 deals likely to be done between now and then, according to an article from Bloomberg BNA. This activity will be in all three “core” sectors: long-term care, health information technology, and physician practices. Will the outcome of the presidential election affect the pace of M&As? No, says the article, because the “systemic changes wrought by Obamacare that are some of the main drivers of health-industry consolidation aren’t likely to go away.”

Sector to watch: Experts say that urgent care will be “huge,” the article reports. This form of healthcare delivery is convenient and less expensive than an emergency room visit. Plus, it’s attractive to investors because of relatively low startup costs and quick profitability.

Extra: A revised chapter on valuing urgent care centers is in The BVR/AHLA Guide to Healthcare Industry Finance and Valuation, 4th edition.

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