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Provident Healthcare Partners Provident Healthcare Partners

Q3 2024 Market Update

Provident Healthcare Partners
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Q3 2024 Market Update

Quarter three marked a strong start to the second half of 2024, with healthcare services deal flow showing a notable increase, bringing the sector back to transaction volumes approaching those seen in Q1 2023. A shifting macroeconomic landscape, notably influenced by the Federal Reserve’s interest rate reduction, sets the stage for a robust Q4 2024 in healthcare services M&A.

Within PPM, the deal pipeline of add-on activity remained resilient despite ongoing investor concerns regarding antitrust legislation in physician practice management deals, as evidenced by a slight decrease in private equity transaction volume compared to Q2 2024 and fewer exits than initially expected. Investors are increasingly looking at sub-sectors with lower labor and reimbursement risks—such as healthcare IT, pharmaceutical services, and related sub-sectors—suggesting a strong finish to 2024 and a promising start to 2025.

Additionally, the continued push towards multispecialty models should provide a catalyst for increased secondary transaction activity in the PPM space as the potential buyer pool diversifies versus years past. Overall, the outlook for healthcare services M&A is optimistic, with a rebound towards historical transaction volumes expected as the year concludes.

To print and download the full Q3 2024 Market Update report, please click below…

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