Resource | Baker Tilly Capital Insider
Healthcare M&A update: H2 2023
April 22, 2024
Navigating uncertainty: Insights from the healthcare M&A landscape
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 2023 (H2 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.
The second half of 2023 in healthcare M&A was a journey through uncertainty, marked by a blend of optimism and caution as the industry continued its recovery from the throes of the COVID-19 pandemic.
Here are some key takeaways from the report:
- U.S. hospitals and health systems rebounded in H2 2023, with margins improving and a shift towards capital planning
- BT Capital HC Index outperformed iShares U.S. Healthcare Providers Index but lagged behind tech-driven S&P 500
- Physician services consolidation dominated via bolt-on deals by private equity platforms
- Economic uncertainty, coupled with factors like borrowing costs and the impending presidential election, cast a shadow over the healthcare M&A landscape as it entered 2024
- Healthcare services companies emerged as the most sought-after targets for buyers in H2 2023, comprising the majority of closed deals
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 2023. The report includes:
- Financial performance of specific healthcare sectors
- Major U.S. indexes performances
- Potential pricing regulation
- Notable transactions closed during H2
