July 16, 2020 – Solganick & Co. issues its latest Healthcare IT M&A update for Q1 2020. As expected, Q1 took a nosedive in deals announced within the Healthcare IT sector.
The following summarizes the report:
Global M&A activity decreased to lowest level since 2016
- M&A transaction value decreased 32% from $933B in Q1 2019 to $637B in Q1 2020
COVID-19 has Hampered M&A Activities
- Debt financing has effectively shut down
- Stock market downturn with continued wild swings
- Increased focus on cash preservation instead of M&A activities
- Business continuity challenges from shelter-in-place orders
US M&A Transaction Value has Decreased in Q1 2020
- Decade of M&A boom came to a sudden halt in March
- M&A transaction value decreased 51% from $459B in Q1 2019 to $225B billion in Q1 2020
- Decline is 19% worse than the global impact
Healthcare IT VC Funding Reached Record Levels in Q1 2020, Led by Telemedicine Sub-Sector with Year-over-Year Growth of ~1800%
U.S. Healthcare IT Deal Count Decreased in Q1 2020 Versus One Year Ago, But Increased from Q4 2019
- U.S. deal count increased to 60 deals announced compared to Q4 2019, which had 49 deals announced
- Average deal size was ~$29M, with funding dramatically increasing from Q4 2019 to $3B
The full report can be downloaded here: Solganick Co – Healthcare IT M&A Update Q1 2020
Solganick & Co. is a data driven investment bank and M&A advisory firm focused exclusively on software and tech-enabled services companies. Its healthcare IT practice caters to fast growing and established companies in the sector. For more information, please contact us.
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