Dealmakers are confidently optimistic about M&A growth in the health care sector according to the latest reading of SourceMedia’s Mid-Market Pulse (MMP). The MMP, published by Mergers & Acquisitions in partnership with McGladrey LLP, is a forward-looking sentiment indicator that monitors near-and intermediate-term outlook for merger and acquisition activity within the middle market.
 
“M&A practitioners predict significant expansion in health care deals,” said Mary Kathleen Flynn, Editor-in-Chief of Mergers & Acquisitions. “In our second look at this sector, health care remains the strongest of those measured by the MMP, beating industry scores for manufacturing, TMT (technology, media and telecommunications), financial services and energy.”
 
Dealmakers delivered health care a composite score of 84.1, marking “the highest yielded by the MMP so far,” Flynn said. The 3-month composite score for the overall index was 75.1, revealing a vast margin between the two.
 
Although the 12-month scores dipped a little, the gap was still broad between health care and the overall index, with scores of 77.3 and 70.8 respectively.

“The slightly less bullish 12-month perspective suggests that dealmakers expect expansion in health care M&A to continue at a slower pace, as the industry’s transformation by the Affordable Care Act lessens over time,” Flynn said.
 
Each month, the MMP index spotlights an individual industry and presents respondents’ expectations for deal activity within that specific sector. This month’s index focuses on the health care sector.
 
In the near and intermediate scores, deal multiples in the health care sector outperformed that same component in the overall index. However, dealmakers were clear that they expect less expansion in the 12-month view.
 
For a complete analysis of the MMP’s most recent data, go to: http://www.themiddlemarket.com/mmp-healthcare1014

To read the full press release with additional insights, click here.