Please note that assistive links (commonly known as "skip to links") are used throughout this site. These links are not well-supported by some mobile devices. If you are encountering difficulty using these links, please navigate around these links, or access the site on a desktop browser.
Skip to the primary content of this page Skip to the footer of this page
Provident Healthcare Partners Provident Healthcare Partners

Q4 2023 Market Update: Ongoing Resilience in Healthcare M&A Activity

Provident Healthcare Partners
Skip to the end of the Expertise Menu

Q4 2023 Market Update: Ongoing Resilience in Healthcare M&A Activity

The volume of healthcare services deals in 2023 remained robust and elevated compared to other sectors, despite navigating several macroeconomic headwinds. Although both the number of deals and the capital raised decreased compared to historical years, the healthcare services industry still presents an attractive opportunity to offset the impact of inflation and recession-driven volatility in the broader economic landscape. Notably, certain sectors such as overall wellness, primary care, and orthopedics have witnessed a surge in transaction activity compared to Q3 2023, indicating investors’ ongoing interest in industries with resilient and enduring patient demand. Additionally, healthcare services deal flow maintained its strength, largely attributed to evolving ​ demographic trends nationwide with a focus on sectors strategically ​ positioned for value-based care.​

Increasing interest rates and ongoing inflation have hindered the buyer-friendly debt markets that previously helped amplify high returns for private equity investors, but credit has still remained available at one to two turns less in leverage on average. With rates stabilizing and potentially easing in 2024, it is expected that sponsor exits will increase substantially in the second half of 2024 after a slow year in 2023. Many investors have waited to see stable to improving market conditions in the middle-market before pursuing secondary transactions which is setting the stage for an active 2024.

To print and download the full Q4 2023 Market Update report, please click below…

[holo_button icon=”” link=”/wp-content/uploads/2024/02/Q4-2023-Newsletter-Package-vF-2.6.24.pdf” color=”#003561″ target=”blank”]PRINT/DOWNLOAD[/holo_button]

​