The Healthcare M&A environment in 2017 is anticipated to continue its strong growth trends. Strategic and private equity acquisition appetites for strong healthcare companies continue to grow and this offers tremendous liquidity opportunities for business owners. As strategic acquirers become increasingly aggressive in their pursuit of new sources of growth, the robust capital markets welcome the next wave of growth companies. Despite significant challenges in reimbursement and other operating factors, many healthcare providers continue to grow profitably by scaling their businesses. While this growth comes at a significant cost to gross margins, we see efficient companies continuing to generate strong overall profits and hence, attractive acquisition opportunities.
Interest is being further accelerated as buyers realize the opportunity presented by a growing number of healthcare beneficiaries. This includes both aging and the newly insured under the Affordable Care Act. When coupled with a consolidating supplier/provider base of companies and the acquisition opportunities become even more attractive.
At Paragon Ventures, we expect these trends to continue throughout the year. We will be at the forefront helping our clients maximize the value of their businesses within this environment.
