In the highly competitive and highly regulated healthcare market environment, successful transactions are becoming an ever-greater challenge. In this article, more about M&A deals in the healthcare sector.
Global M&A trends in the healthcare sector
The pandemic has accelerated the pace of digitalization in many aspects of our lives, and the healthcare sector is no exception. Digital technologies are being implemented everywhere, whether it is patient care, clinical practice management, or the development of advanced precision therapy. As a result of these trends, the major players in FMBO are focusing on creating added value through innovation, moving away from mass-customer-centric business models.
Against the backdrop of a high valuation of the business of companies in the industry, transaction activity is increasing, including transactions with a complex structure – from specialized companies for targeted mergers and acquisitions in the United States to PPP transactions.
M&A deals in healthcare are actively developed in the following areas:
- Products and services in the field of specialty care and care for the elderly continue to attract the attention of investors. Automation and the adoption of digital solutions at all stages of care create opportunities for value creation.
- The high level of activity in the segment of cross-border transactions will remain, as the private equity sector and strategic players continue to increase the capacity of regional growth points and/or develop new markets.
- Private providers of medical services and medical devices that specialize in elective surgery may become more attractive investments as medical institutions fulfill the accumulated backlog of procedures due to the pandemic. In cosmetic surgery and non-essential medical procedures such as laser eye surgery, as restrictions are lifted in many countries, additional demand is also forecast, fueled by increased household savings and unmet patient demands during the pandemic.
M&A deals in the pharmaceutical and life sciences industry
The traditional large pharmaceutical market players have sufficient M&A resources and are likely to remain interested in acquiring biotech companies leading developments in such advanced fields of science as cell and gene therapy and next-generation clinical medicine. With a number of biotechnology companies’ business valuations skyrocketing, large pharmaceutical corporations are actively looking for creative ways to structure deals and better partnerships.
In many countries, the fight against the coronavirus pandemic will remain one of the most important priorities, and the market for consumer medical products that help improve overall health and well-being (such as vitamin-mineral complexes and nutritional supplements) will continue to grow, increasing the investment attractiveness of the industry.
Virtual data room for healthcare M&A
It doesn’t matter whether it’s company acquisitions, the sale of company shares, mergers, re-municipalization, or privatization, questions in due diligence reviews, restructuring, or preparatory market analysis are important. Due diligence generally means the careful analysis and evaluation of an object in a business context. To conduct due diligence more productive and securely it is recommended to use a virtual data room. This software provides a secure digital platform for collaboration and file-sharing.
Virtual data room provides the following functions:
- One-time registration of a document, which makes it possible to uniquely identify a document in any installation of this system.
- The possibility of parallel execution of operations, which allows to reduce the time of movement of documents and increase the efficiency of their execution
- A single (or coordinated distributed) database of documentary information makes it possible to exclude the possibility of duplicating documents.
- Efficiently organized document search system that allows you to find a document with minimal information about it.
- A developed reporting system for various statuses and attributes of documents.