2022 Mid Year Sector Report: Healthcare

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2022 Mid-year update

Healthcare Services M&A activity in the first half of 2022 has backed off 2021’s torrid pace. This does not come as a surprise given today’s landscape compared to the red hot M&A market in 2021 that was fueled by a backlog of delayed transactions created by COVID, a healthy stock market, the availability of cheap debt, low interest rates, upbeat forecasts and dealmakers hurrying to complete transactions before a potential increase in capital gains taxes. We believe the relatively modest number of deals in the first half of 2022 compared to the first half of 2021 is a response to several factors: taking stock after 2021’s fervent activity, continued evaluation of COVID and its effect on the marketplace, and concerns about rising inflation/slowing economic growth. Our expectation for mid-market M&A is that conditions will continue to favor consolidation as companies strive to optimize margins, diversify service lines and capture market share.


Chart showing healthcare services deal counts by year: 2017 had 854 deals, 2018 had 785 deals, 2019 had 943, 2020 had 735 deals, 2021 had 1,037 deals, 1H 2021 had 504 deals, 2H 2022 had 387 deals.


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