BOSTON, April 10, 2023 /PRNewswire/ — Published today, Bain & Company’s 12th annual Global Healthcare Private Equity and M&A report reflects the continued resilience of the healthcare industry, with 2022 seeing near-record levels of healthcare dealmaking, in terms of both volume and value.
Despite a slowdown caused by macro-economic and geopolitical forces in the second half of the year, 2022 was still the second-best year on record for healthcare dealmaking, due in large part to the white-hot pace of investment at the start of the year. Total disclosed deal value reached nearly $90 billion, down from $151 billion in 2021 but still more than $10 billion more than the next-closest year. Bain’s new report shows that ample dry powder and a track record of returns will continues to attract healthcare-specific funds in 2023.
“Healthcare private equity has earned a recession-proof reputation, typically outperforming overall private equity activity during economic downturns,” said Kara Murphy, co-lead of Healthcare Private Equity at Bain & Company. “While the space is resilient, investors will face continued challenges ahead as interest rates and labor costs continue to climb, and credit continues to be tight. As our clients invest to deliver better healthcare, they will need to differentially focus on value creation planning in diligence and post-close.”