Health-Care Transactions Update: Deals Significantly Up in Third Quarter

Bloomberg BNA Health Law Reporter

Gary W. Herschman and Kevin J. Ryan, Members of the Firm in the Health Care and Life Sciences practice, in the firm’s Newark and Chicago offices, respectively, authored an article in the Bloomberg BNA Health Law Reporter, titled “Health-Care Transactions Update: Deals Significantly Up in Third Quarter.”

Following is an excerpt (see below to download the full version in PDF format):

July, August, and September have been the most active deal months in 2017 so far, with over 299 recorded deals. That can be contrasted with the same quarter in 2016, during which only 167 deals were recorded, making it the slowest quarter that year.

The three most active sectors in summer 2017 were long-term care, health-care information technology, and physician practices, as strategic and financial buyers continued to actively shop for assets. The much-discussed market uncertainty—stemming from the political environment, regulatory uncertainty, and other factors—doesn't seem to be hindering transaction activity. …

While the summer months remained active, we believe the market will stay strong through the end of the year. Activity spawns more activity, and sellers are undoubtedly attracted to the high valuation multiples offered by buyers with tremendous access to capital and few investment options more attractive than health care.

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