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Physician Medical Group M&A Activity Decreases 11% in Q4:22, According to Data from Irving Levin Associates, LLC

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“Higher interest rates impacted the final quarter, but investor interest is still high, and we anticipate that deal activity will bounce back in the first quarter of 2023.”


NEW CANAAN, Conn. (PRWEB)

Merger and acquisition activity in the Physician Medical Group sector declined by 11% in Q4:22, according to data captured in LevinPro HC. Yet, the fourth quarter of 2022 had a 11% increase in activity compared with Q4:21 when 138 PMG acquisitions were announced. In addition to deal volume falling, announced spending in the fourth quarter of 2022 also declined. The only PMG deal to have a disclosed price was Digital Transformation Opportunities Corp.’s acquisition of American Oncology Network, LLC for $500 million. This is a significant decrease from Q3:22 with more than $786.2 million in disclosed prices across two deals.

The PMG subsector with the most activity was dental practices with 60 transactions, representing 39% of the total. This accounts for an approximately 28% decrease from Q3:22 when 83 dental deals were reported. The second-busiest specialty was eye care with 16 deals, a slight drop from the 22 eye care deals in Q3:22.

Keeping in line with past trends, private equity (PE) firms and their portfolio companies were responsible for most of the PMG activity, representing 67% of PMG deals in Q4:22 for a total of 102 transactions. PE activity this past quarter fell short of previous quarters. In Q3:22, PE buyer activity accounted for 72% of deals and Q4:21 accounted for 70% of deals.

“While PMG activity reported in Q4:22 is lower than the previous quarter, that doesn’t necessarily mean that PMG interest overall is declining. Higher interest rates impacted the final quarter, but investor interest is still high, and we anticipate that deal activity will bounce back in the first quarter of 2023,” said Glenn Kalinoski, Editor of Healthcare at Irving Levin Associates.

All quarterly results are published in The Health Care M&A Report, which is part of the Irving Levin Associates and LevinPro investment research source. For information, or to order the reports, call 800-248-1668. Irving Levin Associates is celebrating more than 70 years of delivering exclusive M&A intelligence to its sophisticated audience of seniors housing and healthcare investors. The company was established in 1948 and has offices in New Canaan, Connecticut, and North Bethesda, Maryland. The company publishes research reports and newsletters and maintains databases on the healthcare and senior housing M&A markets.

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