Low interest rates and $1 trillion in cash sitting on U.S. corporate balance sheets add up to many companies looking to do an M&A deal this year. BVWire cites a survey from PricewaterhouseCoopers where CEOs say they're planning to complete a domestic deal this year. Thirty percent say they completed a domestic deal in 2012.
Shopping spree: The Healthcare Value Wire reports that more than 50% of healthcare systems and hospitals plan to acquire a physician practice this year, up from 44% last year, citing a report, Physician Practice Acquisitions, from Jackson Healthcare, a staffing company. Driving the decision is the need for a competitive advantage and to attract physician recruits. Specific practices targeted for acquisition include family practices, general internal medicine, ob-gyn, and other primary care providers.
A recent book, Physician Practices: Key Value Drivers in a Changing Environment, is welcome help for valuation analysts in this area. It discusses the drivers of physician practice value, poses critical questions to ask and analyses to undertake for a successful acquisition, and shares lessons learned from industry peers.