The research firm compared deal volumes across several health services sectors. In behavioral health, there was $100 million worth of M&A activity from January to April 2024. That deal volume is down 2% from the same time period in 2023, and value declined by 18% from 2023.
Across the entire health services sector, volume decreased by 4% year over year, and value increased by 18% year over year.
Though overall volumes of mergers and acquisitions in the health services sector have declined from 2022 levels, according to PwC, volumes are higher than during the COVID-19 pandemic. Dealmakers are becoming more accustomed to current interest rates, PwC analysts wrote, which have cut the price of earnings multiples.
“These factors, combined with broader market tailwinds such as capital availability and a need for sponsors to facilitate exits and return capital to limited partners, should continue to bolster deal activity throughout 2024,” analysts wrote.
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