US health services deals insights: Q2 2018

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Deal activity continues amidst uncertainty, while the industry watches potential inflection point transactions

Despite lingering regulatory uncertainty, the US Health Services industry witnessed over 200 deals for the fifteenth quarter in a row. Growth trends were mixed, with total deal volume decreasing over the prior quarter, but increasing over prior year. Total deal value declined by double-digits versus Q1 2018 and Q2 2017, but both past periods had seen exceptional megadeal activity.


Average volumes but value down versus prior quarters’ megadeal highs

For the fifteenth quarter in a row, M&A volume exceeded 200 deals. The total deal volume of 255 matched the average volume seen in the preceding seven quarters. Deal volume declined by 7.3% over prior quarter but increased by 9.4% over prior year.

Versus prior quarter and prior year – periods of exceptional megadeal activity – total deal value declined by 66.1% and 50.7%, respectively. For comparison, in Q2 2018, one megadeal (see below for details) accounted for approximately 40% of the quarter’s total deal value; in Q1 2018, one megadeal accounted for 92%, and in Q2 2017, four megadeals accounted for 56%.

Contact us

Thad Kresho
Health Services Deals Leader , PwC US
Tel: +1 (404) 285 3290

Nick Donkar
Partner, PwC’s Deals Practice, PwC US
Tel: +1 (213) 217 3791

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