Healthcare M&A update: H2 2022

Diagnosis reveals strong private investment

The following report developed by Baker Tilly Capital, LLC provides an update on the healthcare mergers and acquisitions (M&A) market in the second half of 2022. 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:

• Private practice healthcare has remained a focus for private equity investors in the healthcare industry, despite a slowdown in healthcare M&A in H2 2022
• The healthcare industry is transitioning to a value-based care model, which emphasizes patient outcomes rather than the volume of services provided
• Despite the current interest rate environment and higher cost of capital for interested buyers, private investment in the healthcare industry is expected to remain high
• U.S. markets experienced volatility in the back half of 2022, with healthcare sector stocks continuing to decline through the remainder of the year
• Managed healthcare outperformed the S&P 500 in the first half of 2022, largely due to insurance policy providers' ability to manage margins during inflationary periods
• U.S. healthcare M&A activity decreased in the second half of 2022 compared to the same period in 2021, with fewer reported transactions and a lower aggregate deal value

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: H2 2022. The report includes:

• Financial performance of specific healthcare sectors
• Major U.S. indexes performances
• Potential pricing regulation
• Notable transactions closed during H2