Taking the Temperature of Healthcare M&A Activity

With 21 megadeals in the first half of 2017, healthcare continues to be an active segment of the U.S. merger and acquisition market.

BDO Capital Advisors’ latest M&A Market Update covers the key sector and investment trends impacting deal flow in the sector, including:
  • Healthy M&A outlook: Overall healthcare and life sciences deals in 1H 2017 dipped 3.4 percent compared to the first half of 2016, but strong balance sheets, cash availability and the desire to offset low organic growth are expected to drive deal activity through the end of the year.
  • Focus on risk: Strategic and private equity buyers are active, but given ongoing uncertainty in Washington, buyers are most keen on sectors less exposed to regulatory overhaul.
  • Competition is fierce: The median valuation for deals was 12.7x EBITDA, down from 2016 highs, but still the second-highest median multiple in the past six years.For more on M&A results and trends in the healthcare and life sciences industry, including sub-sector trends, view the full report here.
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