Practices with Surgery Centers: A Gem to Private Equity
Acquisitions of physician practices by Private Equity has exploded over the last six years.
Acquisitions of physician practices by Private Equity has exploded over the last six years.
Welcome to the FOCUS Healthcare Group. Leveraging years of industry specific transaction experience, our bankers can confidently advise on mergers, acquisitions and raising capital for growing businesses across the Healthcare Industry.
All types of medical practices have been consolidating over the past 10+ years. While transaction volume declined in 2020 activity accelerated. 2021 will be a record year for completed transactions.
2021 projects that private equity investment in behavioral health will reach an all-time high as investors seek to cash in on the growing demand for therapeutic services.
The first quarter of 2021 delivered 38 reported behavioral health transactions, an increase over any quarter in 2020. We expect some of this activity reflects deals that were delayed due to COVID-19. However, we generally expect high deal flow throughout 2021, supported by increasing private equity interest, a favorable government, and a seller pool that is ready to transact.
The behavioral health market is highly fragmented which is always a catalyst for consolidation. COVID-19 added to that and created an increased opportunity in M&A activity.