The fourth quarter of 2022 was a banner period in terms of healthcare merger and acquisition revenues, and the transactions that took place in the quarter pushed M&A revenues to $45 billion for 2022, according to a new Kaufman Hall analysis.
There were seven announced transactions in Q4, and four of them met Kaufman Hall’s definition of “mega merger,” in which the smaller party has annual revenues in excess of $1 billion. A fifth had a smaller party with revenues in the $500 million to $1 billion range, Healthcare Finance reports.
Q4 marked the third consecutive quarter in 2022 in which the average size of the smaller party across all announced transactions exceeded $800 million. Because of that, the average smaller party size for the year reached $852 million, well above 2021’s total of $619 million, which had been the record.
In total, there were 53 announced transactions for 2022. Smaller party annual revenues exceeded $1 billion in more than 15% of the transactions, just below 2021’s historic high of 16.3%.
While the number of transactions was a slight increase from the 49 posted in 2021, it’s still below pre-pandemic levels. But the combined revenue of the parties in the 2022 transactions resulted in more than $45 billion in total transacted revenue for the year. That’s higher than the recent historic high of $44 billion, recorded in 2017 – this despite having less than half of the total transaction volume. Read more.
