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 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 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 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 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.