The volume of health-care deals in the first quarter of 2022 was slightly lower than the robust activity that ended 2021 due to growing economic uncertainty, according to Epstein Becker Green attorneys and health industry financial and investment analysts at KPMG and FocalPoint Partners, Becker’s reports. They predict the next quarter may indicate whether inflation and recession fears are overstated.
After a hot start to the year on the heels of a booming end to 2021, the volume of announced and closed deals in the health-care and life science markets has notched a little lower in the first quarter of the 2022 (634), down around 10% from the same period in 2021 (723).
The slowdown in deal activity across the industry during the first quarter of 2022 could be due to several reasons.
First, it could reflect a breather from the unprecedented hefty deal volume at the end of 2021 and into January.
Second, it could also be due to economic headwinds, including the highest inflation rate in over 40 years, looming interest rate increases not seen in more than 20 years, labor shortages, and world-wide supply chain issues, along with additional uncertainty driven by the continuing Russian invasion of Ukraine (with no end in sight). Read more.
