Number of PE deals in European healthcare services was 24% down in 2023 compared to 2021 peak
In this infographic we look at the volume, i.e. the quantity, of European healthcare services M&A deals between 2019 and 2023, using data presented by Sharon Lamb, Partner at law firm McDermott Will & Emery, at HBI 2024.
Deal volume in European healthcare services peaked in 2023, when there were 5,400 deals. However, 2022 saw a 6% decline, followed by a steeper 20% drop in 2023. Deal activity has remained low throughout the first half of 2024, but is expected to pick up in 2025.
The fall in M&A activity when measured by value would be significantly larger, as larger deals which require significant amounts of debt leverage have been almost absent throughout the last two years.
Sharon Lamb and her colleague Stephan Rau explained in a session entitled ‘Getting deals done’ at HBI 2024, that whilst smaller deals have still been taking place, they have been taking longer to get over the line as buyers have become more cautious and picky.
Whilst macroeconomic conditions, most notably inflation, have improved in 2024, buyers are cautiously monitoring the potential impact of elections across Europe during a turbulent political year. Investors will be wary about the future direction of healthcare policy and regulation under new governments.
Those who attended HBI 2024 can view recordings of all sessions on the Swapcard app or website.
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