News and Research

Solganick & Co. issues its latest Healthcare IT M&A Update

November 3, 2020 – Solganick & Co. issues its latest Healthcare IT M&A Update for Q2 2020.

You can download the full report here: Solganick & Co. – Healthcare IT Quarterly – Q2 2020

The following summarizes the report:

  • There is continued interest in M&A from both private equity and strategic acquirers, but with a sharper focus on valuation and strategic opportunity.
  • Beneficiaries of new environment are emerging in immediate term, while significant challenges remain for many industry participants.
  • M&A volume accelerated over the course of the quarter, while VC funding and IPO activity continue to be strong.
  • Macro-level trends remain relevant
    Consumerism driven by increased patient financial exposure and enhanced availability of information.
  • Willingness and desire by patients to receive more care in outpatient, at-home and electronic settings.
  • Continued shift towards value-based payment environment will create new business opportunities.
  • Large players aggressively expanding organically and through acquisition, and will continue to disrupt the industry in many ways (e.g., Amazon, Walmart).
  • Demographic tailwinds for the industry as a whole (i.e., increased care utilization due to aging of baby boom generation).

Healthcare IT Index: Valuation Multiples by Quarter

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    Frequently Asked Questions

    1 What were the key M&A trends in Healthcare IT during Q2 2020?

    In Q2 2020, the Healthcare IT M&A market saw continued interest from private equity and strategic acquirers, with a sharper focus on valuation and strategic opportunity. M&A volume accelerated, and VC funding and IPO activity remained strong.

    2 What macro-level trends are impacting the Healthcare IT industry?

    Key macro-level trends include consumerism driven by patient financial exposure, a preference for outpatient and electronic care settings, and the ongoing shift towards value-based payment. Large players are also disrupting the industry, supported by demographic tailwinds from an aging population.

    3 What is the current focus for acquirers in Healthcare IT M&A?

    Acquirers, both private equity and strategic, maintain strong interest in Healthcare IT M&A. Their primary focus is on achieving favorable valuations and identifying compelling strategic opportunities within the market.