Healthcare Services | Third Quarter 2021

October 2021 – Healthcare M&A activity in Q3 2021 continued its record pace started in Q1 2021. According to preliminary figures from Irving Levin Associates Inc., healthcare M&A transaction volume reached 590 deals, up slightly from the previous quarter and 1.5x the same quarter a year prior. The M&A environment is projected to remain robust due to a combination of sellers’ desire to close transactions before a possible increase in capital gains tax next year, an abundance of dry powder from private equity, and a large, fragmented healthcare market to deploy capital. Although some headwinds are on the horizon — including inflation and the possibility of interest rate hikes next year — dealmakers are, so far, undeterred. Transaction activity was robust in all sectors, but was particularly strong in physician services, post-acute care health systems, and healthcare technology.

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