M&A activity in the Physician Medical Group sector rose in Q2:22, reaching 142 deals, a 5% increase from Q1:22, according to LevinPro HC.
NEW CANAAN, Conn., July 13, 2022 /PRNewswire-PRWeb/ -- M&A activity in the Physician Medical Group (PMG) sector rose in Q2:22, reaching 142 publicly announced deals, which is a 5% increase from Q1:22 that saw 135 deals and a 35% increase from Q2:21 that saw 105 deals, according to LevinPro HC. This indicates that the PMG M&A market is not only stable but growing. However, while deal quantity shot up, disclosed spending was down by a fair amount. In Q2:22, disclosed spending barely reached $386 million, which is a major reduction from the previous quarter that had more than $1.5 billion in total disclosed sale prices. It is even a decline from Q2:21 that saw $489.2 million in announced prices.
The largest PMG deal of the quarter was UnitedHealth Group's Optum's acquisition of physician practice management company Healthcare Associates of Texas for $300 million in enterprise value. The deal with the second-largest price tag was publicly-traded biomedical company Atrys Health acquiring the Spanish oncology group Bienzobas Salud for $80.12 million. Dental, which is typically one of the busiest subsectors, saw 42 transactions, a 50% increase from the previous quarter's 28 deals. Following dental for the most announced PMG deals was ophthalmology/optometry with 19 deals, accounting for 14% of total PMG acquisitions.
Keeping up with past trends, private equity firms and their portfolio companies drove PMG activity, accounting for 54% of the deals in Q2:22. In Q1:22 PE firms accounted for 76% of the deals, and in Q2:21, they made up 67%. Active acquirers this quarter have been Shore Capital Partners (7 deals), Rubicon Founders LLC (4) and Audax Private Equity (4). On the flip side, health systems made up a small portion of acquirers at just 3%.
"Private equity firms and their portfolio companies continue to consolidate the physician medical group market, acquiring independent physician practices across the country," commented Kate Humphrey, an Editorial Analyst at Irving Levin Associates. "Much of PE's activity has been in a handful of subsectors, presenting an opportunity in several of the more fragmented subsectors for firms to build scale."
All quarterly results are published in The Health Care M&A Report, which is part of the Irving Levin Associates and LevinPro investment research source. For information, or to order the reports, call 800-248-1668. Irving Levin Associates is celebrating more than 70 years of delivering exclusive M&A intelligence to its sophisticated audience of seniors housing and healthcare investors.The company was established in 1948 and has offices in New Canaan, Connecticut and North Bethesda, Maryland.The company publishes research reports and newsletters and maintains databases on the healthcare and senior housing M&A markets.
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Dylan Sammut, Irving Levin Associates, 2038466800, [email protected]
SOURCE Irving Levin Associates
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