The private equity industry continues to see radiology groups as promising targets for mergers and acquisitions. Despite some recent consolidation, investment firms view the healthcare sector as a fragmented market that’s ripe for consolidation.
This activity is being driven by a confluence of factors, including significant availability of private equity capital. These favorable market trends should continue well into 2023, with no sign of market activity slowing down anytime soon, reports AuntMinnie.com.
In all, $30 billion of capital has been raised in recent years by private equity funds specifically targeted at healthcare companies, attracted to the sector’s highly attractive fundamentals, such as increasing demand, high fragmentation, cost synergies achievable through scale, reimbursement complexity, and capital requirements for growth. The physician services sector is of particular interest due to high fragmentation across over 130,000 independent groups. Read more.
