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Friday
Oct262012

Reporting from the Healthcare M&A Frontlines: Irving Levin

By Clive Riddle, October 26, 2012

Irving Levin Associates has released quarterly merger & acquisition data from two reports they have just published: The Health Care M&A Report, covering the various healthcare sectors, and The Hospital M&A Market Report, Third Edition, 2012.

According to Irving Levin, activity declined during the past quarter. Stephen M. Monroe, Partner at Irving Levin Associates tells us, “historically, the third quarter is usually the slowest quarter of the year, but with the continued economic turmoil in Europe combined with the uncertainty of the 2012 presidential election in the U.S., there has been more caution in the health care market…. Two large managed care acquisitions made up more than half of the total dollars spent in the health services M&A market in the third quarter, and there really were no other dominant deals like that in any of the other sectors, whether technology or services,” according to Mr. Monroe.”

Irving Levin cited the total activity amounted to $38.2 billion in transactions, with managed care comprising 32% of the dollars, pharmaceuticals 24%, Home Health & Hospice 12% and the remain 32% spread among all other segments.

With specific respect to the hospital market, Irving Levin reports that “the Hospital M&A market was continuing its post- recession rebound, but lately it has been slumping in terms of dollars committed.”

Here are data tables Irving Levin has shared regarding M&A activity:

The Health Care M&A Market – Deal Volume By Sector

Sector Q3:12
Deals*
Q2:12
Deals
% Change Q3:11 Deals % Change
Services Segment:  
Long-Term Care 52 36 44% 43 21%
Hospitals 11 23 -52% 16 -31%
Physician Groups 8 21 -62% 28 -71%
Labs, MRI, Dialysis 21 10 110% 6 250%
Managed Care 6 9 -33% 5 20%
Home Health Care 9 6 50% 6 50%
Behavioral Health Care 3 4 -25% 1 200%
Rehabilitation 3 3 0% 6 -50%
Other 22 24 -8% 21 5%
Services Subtotal 135 136 -1% 132 2%
Technology Segment:  
Medical Devices 19 44 -57% 50 -62%
Pharmaceuticals 19 29 -34% 24 -21%
e-Health 25 24 4% 21 19%
Biotechnology 18 22 -18% 12 50%
Technology Subtotal 81 119 -32% 107 -24%
Grand Total 216 255 -15% 239 -10%    

 

Hospital Mergers and Acquisitions January 1, 2007 – June 30, 2012 

Year

Number of
Transactions

Dollar Volume of
Transactions

2007

60

$9,172,000,000

2008

60

$2,502,000,000

2009

50

$3,777,000,000

2010

76

$4,289,000,000

2011

90

$9,905,000,000

2012 6 Months

47

$812,500,000

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