Merger and acquisition activity in the Physician Medical Group sector declined by 11% in Q4:22, according to data captured in LevinPro HC. Yet, the fourth quarter of 2022 had a 11% increase in activity compared with Q4:21 when 138 PMG acquisitions were announced. In addition to deal volume falling, announced spending in the fourth quarter of 2022 also declined. The only PMG deal to have a disclosed price was Digital Transformation Opportunities Corp.’s acquisition of American Oncology Network, LLC for $500 million. This is a significant decrease from Q3:22 with more than $786.2 million in disclosed prices across two deals.
The PMG subsector with the most activity was dental practices with 60 transactions, representing 39% of the total. This accounts for an approximately 28% decrease from Q3:22 when 83 dental deals were reported. The second-busiest specialty was eye care with 16 deals, a slight drop from the 22 eye care deals in Q3:22.
Keeping in line with past trends, private equity (PE) firms and their portfolio companies were responsible for most of the PMG activity, representing 67% of PMG deals in Q4:22 for a total of 102 transactions. PE activity this past quarter fell short of previous quarters. In Q3:22, PE buyer activity accounted for 72% of deals and Q4:21 accounted for 70% of deals. Read more.
