Industry Reports

Q1-2019 Anesthesia Services Update– Over the past two decades, the anesthesia services market has seen a steady wave of consolidation activity driven by both private equity investments and strategic consolidators. Although the anesthesia services market is mature, many consolidators continue to search for add-on acquisition opportunities to further bolster the growth of established platforms, while new industry entrants have begun a new consolidation wave.

Q1-2019 Behavioral Health Update– The new year has brought continued private equity investment into the behavioral health sector, with platforms in addiction treatment and autism services leading the field in add-on acquisitions in the first quarter.

Q1-2019 Dental Services Update– During the first quarter of 2019 there was a record amount of merger & acquisition activity within 14 transactions announced in the dental services sector.

Q1-2019 Dermatology Update– The first quarter of 2019 picked up where 2018 left off, characterized by a flurry of strategic add-ons as the market continues to show signs of maturity.

Q1-2019 Emergency Medical Services Update– Despite a slowdown in activity, private equity-backed emergency service providers are leveraging mergers and acquisitions to diversify their geographic, patient, and payor coverage.

Q1-2019 Healthcare IT Update– With the introduction of the 2019 transparency law requiring hospitals to list standard prices online, companies have turned towards M&A to achieve simplified, personalized, and interconnected solutions for tracking and transparency.

Q1-2019 Healthcare Staffing Update– In the first quarter of 2019, M&A transaction volume was relatively quiet in the staffing sector as consolidators work to integrate acquisitions made over the last 18 months. A common theme throughout the healthcare staffing marketplace has been the interest in locums tenens businesses, both as platforms and add-on acquisitions, to diversify an established healthcare staffing service mix.

Q1-2019 Home Health & Hospice Update– Provident expects continued M&A opportunities will arise from smaller agencies not having the operational capacity or resources to adjust to the new PDGM payment framework. Furthermore, larger providers such as Addus, Elara Caring, Humana, and LHC Group will continue to utilize their infrastructure to drive further consolidation in the industry.

Q1-2019 Laboratory Services Update– Continued uncertainty about future fee schedule cuts has slowed overall spend in the acquisition market of laboratory services. Although slightly suppressed deal volume is anticipated to continue, Provident expects to see a steady flow of strategic transactions announced throughout the rest of the year as opportunistic providers will look to capitalize on market uncertainty.

Q1-2019 Ophthalmology Update – The ophthalmology sector has seen steady levels of consolidation as sponsor-backed consolidators continue to utilize M&A to grow in existing markets and in new ones as well.

Q1-2019 Pharmaceutical CDMO & CRO Update– North America has continued to be a focal point for strategic consolidators. International CROs and CDMOs are expanding their North American footprints via strategic mergers, acquisitions, and asset deals.

Q1-2019 Pharmacy Services Update – Private equity investment and M&A continued to reshape the pharmacy and infusion services sectors in the first quarter of 2019. Despite a recent wave of vertical integration between payors, PBMs and providers in the latter half of 2018, large-scale acquisitions have and will continue to occur as stakeholders expand their core competencies.

Q1-2019 Physician Services Update– During the first quarter of 2019 there were several large physician transactions that point to continued investment and consolidation activity within the physician space.

Q1-2019 Private Equity Industry Update– Volatile public markets and political uncertainty are likely the cause of lower activity in Q1 2019 for both deal volume and capital invested. Due to the lack of investments, this is likely to leave a substantial amount of dry powder that can stimulate consolidation towards the end of the year.

Q1-2019 Rehabilitation Update – Moving into the second quarter of 2019, Provident expects overall physical therapy sector consolidation activity to continue at a rapid pace.

Q1-2019 Veterinary Services Update – Private equity investors continued to lead consolidation activity within the veterinary service market through the first quarter of 2019 driven by both platform investments and facilitated bolt-on acquisitions.

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