Though investors and strategic buyers didn’t wade quite as deep into the hospice market in 2022 compared to years prior, the tide may be rising for M&A during 2023.
Kevin Palamara and Jake Vesely were quoted in this article from Hospice News.
But 2022’s somewhat dampened market does not signal depleting interest in the space, according to Jake Vesely, vice president at the M&A advisors Provident Healthcare Partners, and Kevin Palamara, managing director at the firm. Several economic and financial forces impacted investor decisions to pick up or pass on hospice assets, they said.
“In 2021 many larger groups, especially those backed by private equity sponsors, were seeking an exit due to the possibility of a capital gains increase. While M&A activity in 2022 was lower, this certainly does not indicate buyer interest has lowered,” Palamara and Vesely told Hospice News in an email. “It was simply a combination of an exceptionally active 2021, combined with many M&A targets holding off on a process due to the lingering effects from COVID-19 and the labor market, which impacted financial performance and census growth for many agencies in 2022.”
Access the full article here: Hospice M&A ‘Historically Strong’ Despite Recent Cool Down
About Hospice News
Hospice News (HN) is an independent source for breaking news and up-to-date information on the hospice industry. The coverage spans the hospice world specifically, from large, national service providers to independent care companies. Its news and perspective gives industry professionals the information they need to make the best decisions in their day-to-day business operations.
HN is owned and operated by Chicago-based Aging Media Network. For more information, visit https://hospicenews.com/. External Link. Opens in new window.. External Link. Opens in new window.. External Link. Opens in new window..