M&A Report Released: Healthcare and Life Sciences Trends, Predictions

June 30, 2014

Hospitals and healthcare providers, as well as healthcare IT companies, are the subsectors most likely to see increased consolidation over the next twelve months, according to a report released today by Bass, Berry & Sims PLC.

Published in association with Mergermarket, the “Healthcare & Life Sciences M&A Outlook” cites capital needs and economies of scale as the two major drivers for consolidation among hospitals and providers.

Highlights include:
86 percent of respondents expect M&A activity to increase in healthcare and life sciences driven by these factors:

  • Increased demand for facility and equipment improvement – 46 percent
  • Need for IT support/capabilities – 42 percent
  • Rising compliance costs – 42 percent

72 percent of corporate respondents bought representations and warranties insurance in 2013. In 2014, nearly 90 percent of all respondents will purchase representations and warranties insurance.

The “Healthcare & Life Sciences M&A Outlook” is based on interviews with healthcare and life sciences professionals.

View the full report here.