Paul A. Gomez and Gary W. Herschman, Members of the Firm in the Health Care and Life Sciences practice, co-authored with others a special report in Bloomberg BNA Health Law Reporter, titled “Health-Care Transactions Update: June.”
Following is an excerpt (see below to download the full report in PDF format):
Within health-care services, and particularly in the middle market, private equity groups have long been and continue to be a driving force of consolidation activity where a traditional ‘‘buy and build’’ strategy can be implemented amidst a highly fragmented competitive landscape. Many of these more mature sectors now boast publicly traded consolidators, such as anesthesia providers, dialysis clinics, and ASC management, while some are still experiencing the private equity swell.
Throughout the first half of the year, when hospitals and health systems are removed from the data set, private equity groups were involved in nearly 50 percent of all transactions, either as the buyer of a standalone platform, an acquiring company, or a selling company. Looking across the subsectors that are driving investment amongst private equity groups, there have been significant deal volumes within behavioral health, dental, dermatology, and rehabilitation (nearly 50 deals year-to-date combined in these sectors).
