Industry Reports

Published on: 07/18/2018
Merger and acquisition (M&A) volume in the industry has been precisely on pace with last spring, with 23 deals announced or closed year-to-date in both 2018 and 2017. A closer look at the numbers reveals that two verticals in particular, school-based therapy and autism treatment, are seeing intensifying M&A activity. Through Q2 2018 10 deals have been announced or closed in these verticals compared to six deals through the same period in 2017.
Published on: 06/25/2018
The Healthcare Staffing industry has seen robust growth in the midst of one of the longest economic expansions in US history. The US temporary staffing market for healthcare occupations has grown from $10.1 billion in 2013 to a record $15.9 billion last year, a 57% jump according to Staffing Industry Analysts.  The national unemployment rate hovered at 17-year low of 4.1% for six consecutive months, before edging down to 3.9% in April and 3.8% in May (US Bureau of Labor Statistics).  
Published on: 05/21/2018
The global Medical Device Outsourcing (MDO) market is projected to expand at a compound annual growth rate of 10.4% to reach a market size of approximately $64.0 billion by 2023, according to an April report by Research and Markets.1  Growth drivers include increased incidence of chronic disease as the population ages, continued innovation in medical technology, and enhanced pressure to reduce development and manufacturing costs as payers migrate to value based reimbursement models.    
Published on: 04/05/2018
The number of announced or closed Assisted Living & Elderly Care mergers and acquisitions (M&A) increased 17.4% year-over-year while the Home Health & Hospice Care segment remained almost unchanged. These highly fragmented segments continue to see consolidation, and 14 buyers drove 36.4% of deal activity (44 deals). These companies sought to diversify geographically and gain dominance in the market through acquisition.
Published on: 03/30/2018
Merger and acquisition (M&A) activity in the Behavioral Healthcare Services industry was robust in 2017 with a 27.6% year-over-year increase in announced or closed transactions.  This growth can be attributed to increased buyer appetite for substance abuse treatment centers.    
Published on: 03/29/2018
The Pharmaceutical Outsourcing industry saw brisk merger and acquisition (M&A) activity as sellers capitalized on favorable dynamics and rich valuations. In 2017, 57 deals were announced or closed.  Consolidation will continue as growth-oriented outsourced providers strive to offer more integrated capabilities and acquire firms to expand services, geographic presence, client relationships and technical expertise.    
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.