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Provident Healthcare Partners Provident Healthcare Partners

Q1 2025 Market Update

Provident Healthcare Partners
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Q1 2025 Market Update

The first quarter delivered a strong start to 2025, both in terms of transaction volume and capital deployed. Healthcare M&A activity was especially strong compared to other industries with more exposure to cyclical economic factors. The healthcare services space has been relatively insulated and resilient in the face of many of the macroeconomic uncertainties associated with tariffs and other policies of the current administration.

While 2023 and 2024 were down years from an exit perspective, the first quarter saw a significant rebound in exit activity as the proverbial “log jam” seems to have been broken. Narrowed bid-ask spreads, improved investor sentiment, and lengthy hold periods contributed meaningfully to secondary sale activity in the first quarter.

M&A volume was particularly robust in sectors such as behavioral health and pharma services as investors continue to circle both spaces as core areas of focus given the macro tailwinds driving investment in those industries. While physician services deal flow remains much lower than its highwater market levels, the recent entry of pharma distribution companies has reinvigorated activity in the sector.

To print and download the full Market Update report, please click below…

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