Q2-2022 Primary Care Update
Provident observed a consistently high-level of interest in the Primary Care space from both private equity sponsors and strategic acquirers in Q2 2022, as investors and operators seek to effectively align themselves to capitalize on the growing shift towards value-based care (VBC). New platform investments such as Enhanced Healthcare Partners strategic growth investment in VBC provider Vytalize Health and FFL Partners recapitalization of San Diego-based primary care provider Perlman Clinic demonstrate the persistent and heightened level of demand from the buyer community for premium assets that are poised to benefit from macro healthcare tailwinds.
The Direct Primary Care (DPC) space experienced strong M&A volume as well, evidenced through One Medical’s acquisition of Colorado-based DPC provider PeakMed.
Provident expects the level of M&A activity within primary care to remain robust through the second half of 2022 as recently created platforms seek to deploy growth capital to expand their footprints, service offerings, and back-office capabilities. As the buyer universe for primary care practices continues to expand, sellers are positioned to benefit from a broad and diverse set of potential partners through increased competition and upward pressure on valuations.
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