Early in 2020, there was a massive pandemic-induced nosedive in merger and acquisitions deals in healthcare, reports Fierce Healthcare. But the industry rapidly rebounded, carrying the momentum from the latter half of 2020—which saw a flurry of deals—into 2021, which saw an accelerated pace of activity.
Looking at the first half of 2021, there were 872 reported healthcare M&A transactions that closed, up 15% from the 738 transactions during H2 2020, Baker Tilly reported.
There are a few factors driving a frenzy of M&A activity, including corporations looking for scale and growth as well as private equity firms and SPACs looking to invest capital. Within the hospital sector, there were fewer consolidations but much larger deals in 2021, and that’s a trend that is expected to continue. Read more.
