Transaction Volume Continues to Increase Across Home Health & Hospice. Heaviest Activity in the West and Southwest.
The first quarter of 2021 delivered 35 reported home health and hospice transactions. We expect some of this activity reflects deals that were delayed due to COVID-19, however the pandemic generally increased attention on the sector. We expect high deal flow throughout 2021, supported by strong private equity interest, a favorable government, and a seller pool that is ready to transact. Transactions in the West and Southwest dominated the landscape.
After a Strong First Quarter, 2021 Is Now Looking Like a True Window of Opportunity for Ophthalmology Deals
The first quarter of 2021 delivered fifteen reported ophthalmology practice acquisitions, continuing the surge of M&A activity within the specialty. Notably, EyeCare Partners, now owned by Partners Group, acquired Blue Sky Vision from Sterling Partners, marking a recapitalization of the Michigan-based platform. Acquisitions were spread across ten different buyers highlighting the competitive landscape and various choices practices have for potential partners.
Seventeen PE Firms are now Investing in Orthopedic Practice Acquisitions, Signaling a Probable Surge in 2021 Deal Activity
The first quarter of 2021 delivered four reported orthopedic practice acquisitions continuing a steady pace of transactions in the specialty. Notably, we saw the formation of two new platforms. Trivest partners acquired Bluegrass Orthopedics to form a platform of the same name, and Kohlberg & Company acquired Orthopedic Associates of Manhasset and formed Spire Orthopedic Partners. Seventeen PE firms now have orthopedic platform investments. We believe activity will continue to build throughout the year.
Private Equity Deals for Urology Practices Surges to All-time Record in the First Quarter of 2021. More Expansion Coming?
In our Q4-20 report we noted an increasing interest in urology and posed the question, “Is Urology the Next Darling of Private Equity?” That looks more likely now as the first quarter of 2021 delivered more urology practice acquisitions than any full year since 2017. With six firms now actively seeking to grow their urology platform presence, we believe this specialty may just be entering the Geographic Expansion stage.
Q1 Women’s Health Deals with Private Equity Remain Steady. Investor Activity Indicators Suggest Growth Through 2021.
The first quarter of 2021 delivered three reported Women's Health practice acquisitions. Notably, Shore Capital Partners announced the formation of Together Women's Health, a leading network of integrated women’s healthcare providers with founding practices in greater Detroit.
Members of the FOCUS Healthcare team counted approximately 25 closed dermatology transactions in 2020. Of those, fifteen were for small single-dermatologist practices. Ten deals were for two-dermatology practices, and five deals were for three-to six physician groups.