Industry Reports

Q4-2018 Anesthesia Services Update – The anesthesia sector continues to see steady transaction activity as industry consolidators continue to expand their market presence through add-on acquisitions

Q4-2018 Behavioral Health Update – The fourth quarter of 2018 capped an active year of private equity investment volume within the autism and substance use disorder sectors of behavioral health, with valuation multiples remaining at some of the highest levels within healthcare.

Q4-2018 CRO Update – The Contract Research market continues to demonstrate substantial growth, in large part due to increasing demand for services in clinical trials between Phases II and IV, which account for the majority of the industry’s revenue. Private equity was the driving force behind much of the consolidation in 2018 and the fourth quarter was no different with two of the three transactions involving a private equity or PE-backed acquirer.

Q4-2018 Dental Services Update– Closing out a strong 2018 in the dental services sector, during the fourth quarter, merger & acquisition activity remained robust.

Q4-2018 Dermatology Update– Strategic partnerships drove consolidation activity within dermatology in the fourth quarter with private-equity backed organizations continuing to aggressively execute on their respective add-on acquisition strategies.

Q4-2018 Emergency Medical Services Update– The emergency medical services sector experienced consolidation at an accelerated rate in the latter part of 2018, particularly within the urgent care sector where the largest provider only represents 4% of the total 7,000 urgent care facilities operating nationally.

Q4-2018 Healthcare IT Update– As we transition into 2019, healthcare providers will continue to require a sophisticated blend of tools and capabilities across analytics, care delivery, and patient engagement to adapt to the value-based care model. Provident expects healthcare IT deal-flow to remain steady as companies utilize M&A in order to facilitate the transition towards value-based care.

Q4-2018 Healthcare Staffing Update– The fourth quarter of 2018 witnessed continued M&A activity within the healthcare staffing sector, as private equity firms looked to bolster their existing platforms and strategic acquirers partnered with organizations to further geographic reach and diversity of service lines.

Q4-2018 Home Health & Hospice Update– With a number of others establishing platforms, private equity investors clearly remain bullish, which is translating into heightened valuation levels for groups of all sizes. As we continue to see consolidation within the industry, smaller groups are able to utilize M&A as a way to offset the burden of competing with the data capabilities and scale of these larger platforms.

Q4-2018 Laboratory Services Update– The overall laboratory services market continues to expand, seeing a growth rate of 1.5% a year over the last five years highlighted by the revenue in the space surpassing $19 billion for the first time. The most notable take away from the end of 2018 was the absence of any acquisitions by LabCorp or Quest, who have largely driven the consolidation market for the better part of the year.

Q4-2018 Ophthalmology Update – Investment activity within vision care showed no signs of slowing to close out the year. With two full years of institutional capital flowing into the sector, Provident expects consolidation trends to persist through calendar year 2019.

Q4-2018 Pharmacy Services Update – Consolidation activity within the pharmacy services space in 2018 was defined by a new wave of vertical integration. Cigna, Aetna, and UnitedHealth are using acquisition strategies to more actively engage patient populations, with the hopes of improving outcomes and managing costs.

Q4-2018 Physician Services Update– During the third quarter of 2018, significant investment and consolidation activity continued across the physician services segment.

Q4-2018 Private Equity Industry Update– 2018 resulted in a strong year for private equity fund raising- the second highest fundraising year of all time. The strong deployment of capital has driven up valuation levels and created an even more attractive market for sellers. Despite volatile public market conditions, the outlook for valuations are expected to remain high in 2019.

Q4-2018 Rehabilitation Update – Physical therapy transaction activity remained strong in the fourth quarter of 2018, highlighted by Great Point Partners’ growth recapitalization of San Diego, CA-based Spine and Sport Physical Therapy. Given the high level of consolidation activity that occurred in 2018, Provident expects merger and acquisition activity in the space to remain strong for the foreseeable future.

Q3-2018 Anesthesia Services Update – Consolidation within the anesthesia services sector remained heightened in the third quarter of 2018, as large national players continued to expand through acquisition, targeting opportunities to that increase geographic density and create leverage with payors.

Q3-2018 Behavioral Health Update – Transaction activity within the behavioral health segment continued in the third quarter of the year, with transactions occurring across substance abuse, autism, eating disorder, and telepsychiatry sub-verticals.

Q3-2018 CRO Update – While the previous four quarters had been defined by super mergers and strategic consolidation, the third quarter of 2018 saw a resurgence of private equity investment into the contract research space.

Q3-2018 Dental Services Update– Following a strong second quarter within the dental services sector, during the third quarter, consolidation activity remained elevated.

Q3-2018 Dermatology Update– The third quarter saw many strategic consolidators moving outside of their core geographies, a clear sign that the sector is evolving and moving towards the next phase of the investment cycle.

  • “We would not have been successful navigating the process without Provident’s hard work and active participation. They exceeded our expectations and we would highly recommend them to any health care company seeking a knowledgeable and engaged investment banking firm.”

  • “A lot of investment bankers were interviewed, Provident was chosen. Provident delivered. My clients could not be happier.”

  • “Provident’s depth of experience and practical business savvy was demonstrated in their ability to cut through what sometimes looked like impasse.”

  • “Provident listened to our story, confirmed that our business was valuable and made us feel like this was the only transaction important to them.”

  • “After working with Provident on several transactions, it is evident that their extensive industry knowledge and deal expertise prove to be invaluable to their clients.”

  • “While the decision to sell our business was a difficult one, Provident vigilantly represented and protected our best interests throughout the transaction.  Provident was the right choice for Cascade and I would recommend their services to anyone.”

  • ”I have a tremendous amount of appreciation and gratitude to the Provident team for their hard work and diligence throughout this process. Each and every member of the Provident team is excellent at their jobs and it has been a pleasure working with such a professional team. Provident has provided outstanding guidance and counsel, and this deal could never have gotten done without Provident’s leadership.”