AI Magazine Issue 12 2018

64 Acquisition International - Issue 12 2018 November has been a quiet month as regards mergers and acquisitions (M&A) activity in the healthcare sector, according to Zephyr, the M&A database published by Bureau van Dijk. In all, there have been 88 deals targeting healthcare companies announced worldwide during the month, marking a decline on both October 2018 and November 2017. t the time of writing, there are still four days to go until the end of November, but it seems unlikely that enough deals will be signed off in this time to result in either volume or value improving on October 2017, when 176 deals worth USD 4,101 million were announced. In fact, November’s result represents the lowest for some time – the last time value plumbed such depths was in October 2017, when deals worth USD 1,275 million were announced, while volume has not been this low since the 82 deals announced in October 2010. However, despite this disappointing showing for November, 2018 as a whole is shaping up fairly well. Although there is still over a month to go until the end of 2018, value for the year to date stands at USD 62,414 million, making it the third most valuable year on record for the sector, behind 2015 (USD 64,914 million) and 2006 (USD 74,544 million). 2018’s impressive value is due to a number of high value transactions; in all, 11 deals broke the USD 1,000 million-barrier, with the largest of all worth USD 9,900 million and involving KKR & Co buying Envision Healthcare. This deal alone accounts for xxx per cent of total healthcare value (USD 62,414 million) in 2018 to date. However, none of November’s deals are anywhere close to this scale, with the month’s largest worth a relatively paltry USD 549 million and placing 17th for the year to date. That transaction took the form of a minority investment in UK-based residential learning disability care centre operator Caretech Holdings by Farouq Sheikh and Haroon Sheikh. This was followed by a USD 343 million private placing of stock by China-headquartered Meinian Onehealth Healthcare Holdings. As we near the end of 2018, it is worth taking a look at how the final quarter is shaping up. In terms of the various world regions being targeted, Western Europe is leading the way in Q4 to date, with companies based in the region having been targeted in deals worth a combined USD 2,609 million, followed by North America with USD 1,670 millon. This puts both regions some way ahead of third-placed Oceania (USD 632 million). In terms of volume, North America is ahead of the pack in Q4, with 129 deals, while Western Europe and the Far East and Central Asia came next with 56 and 55 deals, respectively. In terms of 2018’s top deals to date, eight of the top 20 featured a US company, while Western European businesses were targeted in seven. In conclusion, November has been a quiet month in comparison with those which came before when it comes to dealmaking in the healthcare sector, but it is worth remembering that 2018 as a whole has been a good year for the sector. Sustained M&A activity in the run-up to Christmas should result in an impressive result once January comes around and the time comes to look back at the preceding 12 months. Company: Bureau van Dijk E-Mail: [email protected] Web: www.bvdinfo.com Healthcare A