M&A Risks in the Middle Market Healthcare Services Sector

January 2018

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Merger and acquisition (M&A) activity in 2017 was at a high level with:

  • An enormous amount of capital available
  • Low borrowing costs
  • A strong equities market and
  • A low rate of organic growth in many sectors of the economy

One industry sector that continues to be very active is healthcare services. This sector covers a broad array of services such as acute care, chronic care, and technology. There is a higher than average level of M&A activity in this area even though transaction multiples tend to be higher than in many other sectors.