Healthcare merger and acquisition-related transaction volume picked back up in June with $73.5 billion in capital being invested in the quarter, according to an update from Provident Healthcare Partners.
What you should know:
1. The COVID-19 pandemic decreased the number of deals closing in April and May, but a series of deals, representing 42 percent of quarterly volume, in June showed the market is recovering.
2. Established platforms "underwent a difficult transitional period" but have pivoted to telehealth, and some have created new business lines by establishing departments to treat COVID-19 patients.
3. Investors targeted the durable medical equipment, healthcare IT and pharmaceuticals sector in the quarter.
4. Concerning ophthalmology, the M&A market came to a halt in April and May as a result of the pandemic. Provident believes market activity will accelerate and anticipates most deals that were delayed will close in the second half of the year.
However, "the structure of those deals will likely look a bit different given the uncertain environment," the report said.
5. Concerning specialty services, Provident, "expect[s] to see similar structures going forward as both sponsors and sellers remain eager to execute on growth initiatives."