Mergers & Acquisitions’ Mid-Market Pulse: Outlook Brightens for Healthcare

M&A professionals anticipate robust dealmaking in the sector

September 20, 2016, NEW YORK – The outlook for M&A in the healthcare sector was much more positive in August than it was earlier in the year, according to Mergers & Acquisitions’ Mid-Market Pulse (MMP), published in partnership with CT, a provider of business compliance and deal support services.

The MMP is a diffusion index that monitors forward-looking sentiment across a range of mid-market M&A sectors over the coming 3- and 12-month periods. Readings above 50 indicate that professionals expect an expansion in M&A activity and readings below 50 indicate a contraction.

Healthcare, which scored 71.0 for the 3-month outlook and 72.1 for the 12-month outlook, has been one of the more volatile of the sectors tracked by the MMP. The sector registered a 91.2 in March 2015, the highest score recorded in any sector since the MMP’s launch in October 2014.

“Based on ongoing survey responses, it appears that professionals may be gearing up for increases in deal activity in this sector once the election happens,” said Mary Kathleen Flynn, Editor-in-Chief of Mergers & Acquisitions. “This should provide professionals with a clearer sense of fiscal trends to allow for more straightforward decision-making.”

Highlights:

  • The outlook for the healthcare sector was much more positive this reading than it was earlier in the year
  • Healthcare’s high level of regulation has made the upcoming election of great concern to transaction pros in this sector
  • The Affordable Care Act has driven consolidation in this sector. However, the impact of ACA legislation is expected to lessen

Mergers & Acquisitions’ Mid-Market Pulse index was developed by SourceMedia Research with the editors of Mergers & Acquisitions to gauge mid-market mergers and acquisitions activity. The MMP is powered by surveys of Mergers & Acquisitions’ audience of unique and qualified professionals in private equity, investment banking, and law firms, corporations, and other M&A advisory entities. A complete analysis of the most recent MMP data is available here.

About SourceMedia
SourceMedia, an Observer Capital company, is a business-to-business Digital Marketing Services, Subscription Information, and Event company serving senior-level professionals in the financial, technology and healthcare sectors. Brands include American Banker, PaymentsSource, The Bond Buyer, Financial Planning, Accounting Today, Mergers & Acquisitions, National Mortgage News, Employee Benefit News and Health Data Management.

About SourceMedia Research
SourceMedia Research, a unit of SourceMedia, provides research solutions for marketers, agencies and others targeting business sectors such as banking, payments, mortgage, accounting, insurance, employee benefits and investment advisor / wealth management. SourceMedia Research specializes in reaching senior and C-level decision makers through access to its large proprietary opt-in databases and panels.

About Mergers & Acquisitions
Mergers & Acquisitions covers all aspects of middle-market dealmaking, including identifying acquisition targets, negotiating transactions, performing due diligence, and closing deals. The brand’s website at TheMiddleMarket.com is continuously updated, providing real-time analysis of news and trends in M&A. Its monthly magazine is published in partnership with the Association for Corporate Growth (ACG), a global organization comprised of thousands of private equity firms, corporate officials and intermediaries.

About CT
CT, part of Wolters Kluwer, works with businesses around the world to offer customized capabilities and comprehensive business compliance and deal support services. Drawing on more than a century of experience, CT’s full suite of services can assist you from the beginning stages of due diligence, through the high-pressure stage of closing – offering expertise and continuity at every step of the way.

For more information, please contact:

Dana Jackson
Dana.jackson@sourcemedia.com
212-803-8329

Mary Kathleen Flynn
marykathleen.flynn@sourcemedia.com
917-915-7190