Physician Medical Group M&A Activity Remained Strong in Q2:2021, According to Acquisition Data from Irving Levin Associates, LLC
NEW CANAAN, Conn. (PRWEB) July 23, 2021
Activity in the Physician Medical Group M&A market remained strong in the second quarter of 2021, with 103 publicly announced transactions, compared with 112 acquisitions in the first quarter, according to data from Irving Levin Associates, LLC. In the second quarter of 2020, only 29 deals were announced, indicating the Physician Medical Group M&A market has roared back from the lows of the pandemic.
Few transactions in this sector disclosed prices last quarter but disclosed dollar volume significantly increased to $1.65 billion, compared with the $489.2 million disclosed in the first quarter. The largest deal by disclosed price was DFP Healthcare Acquisition Corp.'s$842 million SPAC merger with The Oncology Institute of Hope and Innovation at the very end of the quarter. The Oncology Institute is the largest community oncology practice in California, with more than 50 offices in Arizona, California and Nevada.
Private equity firms and their portfolio companies are typically the dominant buyers in this sector, and that continued in the second quarter of 2021. PE firms and their sponsored companies accounted for 67% of the deals announced in the second quarter. However, other buyers, including hospitals and managed care companies, moved aggressively into the market last quarter, displaying a trend toward healthcare consolidating across verticals.
"Two strong quarters in a row for Physician Medical Group M&A definitely indicate the returning strength of the sector," commented Julia DiRubbo, Research Analyst at Irving Levin Associates, which tracks the data. "Private equity and other strategic buyers are looking to expand their regional platforms and market presence, so it is likely we will continue to see a healthy number of transactions in the coming months as long as Covid-19 doesn't return in a way that puts the market back on hold."
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.