Activity in the Physician Medical Group M&A market remained strong in the second quarter of 2021, with 103 publicly announced transactions, compared with 112 acquisitions in the first quarter, according to data from Irving Levin Associates. In the second quarter of 2020, only 29 deals were announced, indicating the Physician Medical Group M&A market has roared back from the lows of the pandemic.
Few transactions in this sector disclosed prices last quarter but disclosed dollar volume significantly increased to $1.65 billion, compared with the $489.2 million disclosed in the first quarter. The largest deal by disclosed price was DFP Healthcare Acquisition Corp.’s $842 million SPAC merger with The Oncology Institute of Hope and Innovation at the very end of the quarter. The Oncology Institute is the largest community oncology practice in California, with more than 50 offices in Arizona, California and Nevada.
Private equity firms and their portfolio companies are typically the dominant buyers in this sector, and that continued in the second quarter of 2021. PE firms and their sponsored companies accounted for 67% of the deals announced in the second quarter. However, other buyers, including hospitals and managed care companies, moved aggressively into the market last quarter, displaying a trend toward healthcare consolidating across verticals. Read more.
