Industry Reports

Published on: 01/16/2018
Consolidation in the Medical Device Outsourcing (MDO) industry continues unabated driven by favorable industry dynamics (aging population, greater healthcare utilization and innovation), demand from clients for broader portfolio of services and turnkey solutions and mega mergers among OEMs and subsequent desire to streamline their supply chains.   
Published on: 01/01/2018
The Healthcare industry continues to be highly active and is slated for continued to growth.  According to the Bureau of Labor Statistics, employment in the Healthcare and Social Assistance sector is projected to create nearly one-third (4.0 million) of all new jobs by 2026.  Potential federal spending cuts could negatively impact the Healthcare Services industry in 2018.  According to IBISWorld, Medicare and Medicaid programs fund nearly 90.0% of Home Health & Hospice revenue.      
Published on: 10/11/2017
The US Healthcare Staffing Industry is projected to grow a healthy 7.0% in 2017 according to SIA.  Much of this growth stems from greater health care utilization as the population ages coupled with a tight supply of qualified medical professionals. Global health care expenditures are expected to reach $8.7 trillion by 2020 from $7 trillion in 2015 (Deloitte) while The Bureau of Labor Statistics is projecting significant deficits of both physicians and nurses by 2025.
Published on: 10/02/2017
The industry has seen a wave of high-profile acquisitions in 2017 in all major subsectors of pharma outsourcing including contract manufacturing, drug discovery services, CRO and analytical testing. Private equity have been active acquirers willing to pay valuation premiums for platforms with scale and differentiated capabilities as evidenced by the recent AMRI and PAREXEL deals; both of which were acquired by equity groups at double digit EBITDA multiples.    
Published on: 09/13/2017
Merger and acquisition (M&A) activity has been robust through August, with 183 transactions announced or closed—a slight increase from the 178 year-to-date (YTD) in 2016. While most segments’ activity levels have been similar to 2016, Assisted Living deals have increased from 31 YTD in 2016 to 50 YTD in 2017.
Published on: 09/06/2017
Deal volume in the Behavioral Healthcare industry has picked up through Q3, largely due to an increase in private equity activity.  Add-on acquisitions continue to be a focus, as treatment centers look to expand geographically as well as add service capabilities. 
Published on: 08/08/2017
Based on results through the first six months of 2017, merger and acquisition (M&A) activity in the pharma outsourcing sector is on pace to modestly exceed the results for 2016. Through Q2, 33 M&A deals have been announced or closed in the space compared to 64 transactions completed all of last year.
Published on: 07/20/2017
After peak activity in 2016, the outlook for merger and acquisition (M&A) activity in Behavioral Healthcare remains positive. Compared to 2015, which had only 18 deals announced or completed over the same year-to-date time period, M&A activity was robust thus far in 2017, with 27 deals announced. Capstone expects healthy deal activity through the end of this year and into 2018.
Published on: 07/18/2017
Healthcare staffing M&A activity and valuations continue to outperform the broader staffing sector. Through June 30th, there have been 20 transactions within the Healthcare Staffing industry, representing 19.6% of the completed deals within the broader Human Resource and Staffing sector, and a sizable increase in volume relative to the same period last year.
Published on: 05/15/2017
A number of factors continue to drive growth in the medical device sector including an aging population and corresponding increase in healthcare utilization, advances in technology, the growth of the middle class in emerging markets and a desire among seniors to enjoy a more active lifestyle than prior generations. 

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