The urology subsector recently has garnered increased interest in the healthcare industry, partly due to the aging population and surging demand for urologic care. This growing patient population has driven investment interest and transactions over the past several years, according to McGuireWoods.
Specifically, numerous private equity-backed investors and administrative providers have emerged in the space, which is driving continued competition for add-on and platform transactions. As was the case with many physician practice subspecialties, transaction activity was more sluggish during the end of 2020 and early 2021, but as 2021 progressed, interest in urologic deals increased and many transactions have become highly competitive. Expect acquisition interest in this subsector to continue for many reasons, including potential growth of ancillaries (e.g., radiation therapy and surgery centers), increased capital cost of build-out for these ancillary service lines, and physician interest in administrative and operational partners. Read more.
