How satisfied are you with due diligence in your healthcare M&A deals?
“Some markets are closed to or are unfavorable toward acquisitions but have great potential with JVs. The desire to access new technology could also move us to explore more JV opportunities.”
CFO at a medical data and software company
As healthcare companies seek to adapt and thrive in a fast-changing environment, M&A is playing a crucial role. We surveyed 100 dealmakers on the private equity and strategic buyer sides on how they’re strategizing to place the right bets in this competitive environment.
Mean EBITDA multiple for
U.S. healthcare targets
Managing director at a PE firm that has made more than a dozen healthcare investments
Mobile tools (49%)
Data analytics capabilities (37%)
Wearable technology (25%)
Market conditions are reshaping healthcare M&A, causing ...
Deals for U.S. healthcare targets in 2017
“Technological change is positive, as it improves performance and opens up new opportunities. But when the pace of change is very fast, it can become challenging to adapt quickly enough to keep a business on track.”
DOWNLOAD THE STUDY
Why is it so complex? Click to find out.
DOWNLOAD THE STUDY
Healthcare companies need to turn data into action—
so they’re acquiring technology to make it happen.
rank digital health and healthcare IT in their top 3 priorities
MOST ATTRACTIVE TECHNOLOGIES
“Over the last few years we have invested in healthcare technology companies and technology-backed healthcare services companies, and the biggest operational risk we have faced is regulatory risk, in part because regulations have not kept up with innovation.”
(2nd-highest total on record)
Why are JVs becoming so popular? Click the quote.
of survey respondents said they discovered a cybersecurity problem at an acquired healthcare company after the deal was done.
Partner at a Midwest-based PE firm that specializes partially in healthcare
Condensed timelines for due diligence
Also, 79% of dealmakers say they will pursue alliances, partnerships and joint ventures in the next 12-18 months.
Operating partner at a Northeast-based PE firm focused exclusively on healthcare
What’s driving deals?
93% of dealmakers say technology is adding complexity to healthcare transactions and 36% say the biggest challenge to healthcare companies is the fast pace of change in technology.
Shortage of attractive targets
Reshaping Healthcare M&A: Competition and Technology are Changing the Game
What risks come with new investments in technology? Click the quote to find out.
“We did have to conduct additional due diligence on cybersecurity until we got everything right. We needed to commit additional resources to the process as well as revamp our methods, as we were not satisfied with the initial results.”
Play your cards right to win the
competition in healthcare M&A.
Here's how cybersecurity is affecting diligence.