Healthcare merger and acquisition activity is on the rise as the last quarter of 2020 showed a significant increase over 2019 and this will continue throughout 2021.
The Healthcare Financial Management Association noted that the fourth quarter of 2020 showed a marked increase in merger and acquisition activity across healthcare organizations. Hammond Hanlon Camp LLC (H2C), an independent investment banking and strategic advisory firm with an exclusive focus on healthcare services companies and related organizations, recorded 177 transactions in its healthcare mergers and acquisitions database in Q4 2020, a 21% increase over Q4 2019.
Recently Forbes predicted that merger and acquisition activity in the healthcare industry will speed up and more varied healthcare companies will get involved in mergers and acquisitions. Further, the fear of exposure to the virus will also prompt more healthcare companies to get involved in mergers and acquisitions. The pandemic is just another spark that has made it even more urgent for healthcare companies to try and offer a do it all in one visit facility as well as expand their footprint across multiple markets.
PwC’s US Health Services Deals Leader noted that “In 2021, deals or restructuring could be a matter of survival for some companies. For others, they are likely to be a tool for growth and enabling efficiencies, as COVID-19 uncertainty, competitive pressures, and technological imperatives evolve.”
As this market heats up in 2021, the need for seasoned professionals and organizations with experience in the healthcare market to provide support with valuation, quality of earnings analysis and overall transaction structure support will become critical to ensure that any investment with a healthcare organization is properly analyzed and reviewed for cash flow, synergy impacts and overall accretive returns. During 2021, McKonly & Asbury has assisted with multiple deals across different industries but more specifically has supported multiple deals within the healthcare market. McKonly & Asbury has assisted with preliminary valuation support, quality of earnings and final deal structure as well as post integration matters.
The second half of 2021 is sure to see a continued increase in merger and acquisition activity within the healthcare market. As organizations that paused on these activities during 2020 begin moving forward with their plans in 2021, our seasoned valuation, quality of earnings, and transaction support professionals are ready to assist. Please contact David Blain, CPA, CVA, Transaction Advisory Services Leader at email@example.com, or Janice Snyder, CPA, Healthcare Services Leader at firstname.lastname@example.org.