On March 19, The Deal will be hosting a
Healthcare Dealmaking Symposium, monitoring the current pace of healthcare M&A deals and developing an outlook for 2008. Fittingly, Brown Gibbons Lang & Co. just issued their quarterly newsletter, BGL Healthcare Insider. In this edition, they focus on the home medical equipment and supplies sector. BGL says M&A activity has cooled slightly due to potential reductions in Medicare rates, but they expect the market to heat up again in the coming months.
Along with an analysis of the HME sector, BGL gives some numbers for the entire healthcare industry:
- A total of 1,051 transactions were announced in 2007 (vs. 1,009 transactions in 2006) for a deal value of $226.5 billion (vs. $268.4 billion in 2006).
- The technology category led healthcare M&A for the year, accounting for 54% of deals announced and contributing $172.9 billion, or 76%, of the total M&A funds committed in 2007.
- Pharmaceuticals brought in the largest M&A spend, with $73 billion in funds committed, and also posted strong deal volume with 177 transactions announced in 2007 - a 28% increase over 2006.
Despite the credit crunch, BGL says M&A activity was bolstered by strategic buyer transactions and consistent middle market volume.
At the conference next week, Corporate Dealmaker editor Kenneth Klee will be in attendance, moderating a panel in which
leading strategic dealmakers active in healthcare M&A will reveal
what they look for in a target and how to close the deal. -
Baz HiralalGo to the BGL quarterly newsletter
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