Outlook For Healthcare Services Deals Is Favourable, According To PwC

 Outlook for healthcare services deals is favourable, according to PwC

Following successful years for healthcare services acquisitions in 2021 and 2022, volumes have held up through May despite a number of challenges, such as rising interest rates, increasing antitrust regulatory review worries, raised valuations, and widespread recessionary fears..

According to a recent analysis from PwC, PricewaterhouseCoopers, the outlook for health services agreements for the rest of the year is positive. The need for health services organisations to adapt and reinvent themselves is being driven by sector dynamics, and both corporate and private equity participants are holding onto sizable amounts of capital that need to be deployed.

Deal volumes for health services fell by only 4% from levels recorded in 2022 in the 12 months that ended in May. However, volumes are still almost twice as high as they were from 2018 to 2020. 

Deal volumes for health services fell by only 4% from levels recorded in 2022 in the 12 months that ended in May. However, volumes are still almost twice as high as they were from 2018 to 2020. 

WHAT IS THE RESULT

More than half of the disclosed deal value during the course of the study's 12-month timeframe came from megadeals, or transactions for $5 billion or more.

There were six significant transactions during this time, including the $7.1 billion purchase of Syneos Health by a private investment consortium made up of Elliott Investment Management, Patient Square Capital, and Veritas C, and the $10.6 billion acquisition of Oak Street Health by CVS, a network of primary care facilities for Medicare-eligible older adults.

PwC estimates that the combined value of these three agreements accounts for $26.6 billion of the $38.2 billion in other services deal value over the past 12 months.