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Q3 2024 Clinical Research Update

Provident Healthcare Partners
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Q3 2024 Clinical Research Update

Clinical research sites remain one of the most active M&A sectors across all of healthcare services, although saw volume of deals remain relatively flat compared to Q2-24. Compared to many other healthcare services sub-sectors, clinical research platforms remain highly attractive to private equity firms. Strong industry tailwinds (e.g., high margins, cash rich pharma and biotech sponsors) and ability to bolster many operational levers on both the revenue and expense side of the equation (e.g., increased contract values, centralized corporate functions, economies of scale) allow private equity investors flex their business acumen, while allowing investigators to focus on providing care to their patients.

As the cost of capital continues to fall, there could be accelerated deal volume, especially given the competitiveness and valuations research businesses are demanding right now. Good assets, especially those of scale, still command multiples in the high-teens to low-twenties, thus making financing these deals critical to the success of the platform and return on equity for investors.

To print and download the full Clinical Research Update report, please click below…

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