Healthcare M&A update: H1 2023

Reviving healthcare M&A: a mid-year overview

The following report developed by Baker Tilly Capital, LLC provides an update on the healthcare mergers and acquisitions (M&A) market in the first half of 2023. The report includes an overview of the market performance, M&A activity, transactions by segment and buyer, and U.S. middle market M&A activity.

Here are some key takeaways from the report:

• The healthcare M&A landscape in H1 2023 was marked by market optimism, as the U.S. markets experienced significant growth with major indexes like the S&P and Nasdaq posting substantial gains, despite ongoing interest rate hikes by the Federal Reserve
• Healthcare sectors demonstrated a robust recovery during H1 2023. Acute care, home health, long-term care, and non-acute care sectors all reported notable performance increases, while managed healthcare saw a decline
• The number of healthcare M&A transactions declined by 18% in H1 2023. In line with the decline in volumes, total healthcare deal value also declined from 10.8% from $93.7 billion for H1 2022 to $83.6 billion
• A notable acquisition stood out during H1 2023 showcasing the sector’s dynamism
• The middle market segment faced challenges in healthcare M&A during H1 2023, with a 21.5% decrease in transactions totaling $13.1 billion

Get the pulse of the industry

For an in-depth look at M&A activity in the healthcare industry, download a copy of our healthcare M&A update: H1 2023. The report includes:

• Financial performance of specific healthcare sectors
• Major U.S. indexes performances
• Potential pricing regulation
• Notable transactions closed during H1