There were more than 1,200 deals within the health services industry in 2019, and long-term care, once again, led the pack for all sectors, according to a PwC report.
The long-term care sector saw a total of 437 deals, which was 36% of the year’s total volume for health services. There were also 100 deals in the fourth quarter of 2019 within the sector — which was about 34% of the total quarterly volume.
The Ensign Group Inc. and Welltower Inc. were among the “most active buyers” within the sector. The companies completed 15 and 14 deals, respectively.
Long-term care also was one of three sub-sectors (along with managed care and hospitals) that grew in terms of both volume and value, the report noted.
The sector has been a driver of merger and acquisition activities for several years. In July 2019, a PwC report, which also utilized Irving Levin Associates data, found that deals involving LTC and assisted living properties made up 41% of 543 healthcare transactions during the first six months of the year.
Overall, researchers speculated that the upcoming presidential election and long-standing sector trends may impact the strategic direction of deals in 2020.
“On the sector trend front, capital availability persists and will continue driving deals activity. Private equity firms, for example, are likely to continue seeking value-driven models, especially in growing sub-specialties. Private equity firms also remain potential deal partners for payers and providers,” the report noted.
