The healthcare services sector continues to attract attention from buyers across a broad range of backgrounds. While late 2021 and 2022 proved to be record years for healthcare M&A, 2023 is expected to descend slightly, but still land above pre-pandemic levels. The industry’s overall strengths will endure, people need care, drugs, and medical devices in good times and bad but some subsectors should see more action than others.3 Companies will divest non-core assets that, in turn, will facilitate innovation and permit access for acquirers; and continued geopolitical turmoil, supply chain challenges and labor shortages will fuel disruption and force firms to focus on their longer-term strategies. Although broader economic headwinds due to inflation and rising interest rates will impact deal flow and valuations across many sectors, demand for quality, sustainable healthcare assets will remain strong.
