M&A dealmaking activity in the healthcare sector slowed drastically in the first quarter of 2022, and this cautious approach could continue for the rest of the year, Institutional Investor reports. Higher supply costs and investors laying low after a rough first quarter are among the drivers.
In the first quarter of 2022, the total number of healthcare M&A transactions declined by 34 percent from the last quarter of 2021, according to a KPMG report released Tuesday. Specifically, the report said that over that same time period, private equity transactions with healthcare companies fell by half, while deals involving strategic buyers dropping by 13 percent.
The slowdown comes just a year after a record year of deal making between private equity and health care, driven by an aging population, digital innovations, and other factors, according to Bain & Co. In 2020, digital health companies alone received $35 billion of investments from private equity firms, as II previously reported. Healthcare represented 14 percent of deal activity in PE in 2020. Read more.
