Mergers and acquisitions for healthcare services were “extraordinarily strong” in the second quarter of 2014, according to analysis conducted by Scott-Macon.
The Affordable Care Act has changed the healthcare industry dramatically, spurring re-alignments across multiple sectors. A wide range of businesses conducted acquisitions in 2Q 2014, including hospitals, private equity, software solution providers and consulting firms.
Although large, transformative healthcare deals such as Valeant’s hostile takeover bid for Allergan and the Abbvie-Shire tax inversion make the news, it’s important to remember than many deals are smaller, privately held transactions. These smaller transactions can be advantageous by allowing companies to execute a growth strategy without exposing their plans to their competition.
For the remainder of the year, we can expect continued robust activity as healthcare stocks rise and U.S. companies look to increase scale as they adjust to the ACA.
