The shift to value-based care and an abundance of cash in the market are some of the drivers impacting healthcare mergers and acquisitions. These and other trends have been strong over the past few months and are expected to continue, impacting transaction planning for buyers, according to HIT Consultant.
Considering acquiring a healthcare business in 2023? Here are seven things to know.
- Value-based care is becoming a key driver in healthcare M&A
- Deal competition and rising interest rates are impacting deal multiples
- Many buyers competing for smaller practices
- Understand seller’s desires to win deals
- Inflationary pressures affecting financial projections, deal multiples, and go-forward compensation
- Plan compensation structure that keeps clinicians motivated after deal closes
- Consider risk tolerance around seller’s financial data
