Healthcare & life sciences M&A research 2022

Article

Private equity drives growth in number of acquisitions in healthcare and life sciences and increasingly international

Research: Mergers and acquisitions in healthcare

The number of mergers and acquisitions in and around the Dutch Life Sciences and Healthcare sector continues to rise. In particular, the number of transactions by Private Equity parties, who are increasingly international, rose sharply in 2021. Private Equity parties and their portfolio companies now account for almost two-thirds of the total number of transactions.

The share of transactions by investors has increased for the sixth year in a row. Investors as buyers, including transactions by portfolio companies, executed 74 transactions in 2021, which is an increase of 28% compared to the number of transactions in 2020. The number of foreign buyers strongly increased in 2021 compared to 2020. 47 out of 116 transactions were done by international buyers versus 35 in 2020. This includes both foreign strategic buyers as well as foreign investors. In addition, the total number of transactions in life science & healthcare showed an increase in 2021 (116 in 2021 vs. 96 in 2020). This increase seems to be directly related to the recovery of the overall M&A market.

These are the main conclusions from Deloitte's annual market analysis, which has been researching mergers and acquisitions in the Dutch healthcare and life sciences sector annually since 2008.

Dagmar Enklaar, Partner Healthcare Financial Advisory at Deloitte: 'This growth will continue for some time. Since 2010 there have only been three years in which the number of healthcare deals did not increase. This puts the sector in line with the broader trend in mergers and acquisitions. Investors have a lot of money to spend, and interest rates are low. This creates competition and therefore structurally higher prices. Some of the growth is coming from new investors. Healthcare is always needed and therefore relatively stable. That is why many parties include the sector as part of the diversification of their portfolios.'

Read all outcomes and more background information in the executive summary of the study on mergers and acquisitions in the life science and healthcare sector. You can download the summary via the link on the right.

Outlook 2022

Looking ahead to 2022, Deloitte expects the total number of transactions to increase further, as well as the share of investors. Matthijs van Thiel de Vries, Director Healthcare Financial Advisory: 'Investors continue to have a lot of funds available to invest. There is a growing number of investors that focus on the healthcare and life sciences sector because of the strong market fundamentals. The number of platform companies among investors has continued to grow over 2021, which will ensure increased transaction activity in the future. In addition, transaction activity will be increasingly international due to the increasing size of investors and their portfolio companies. Furthermore, due to COVID-19, digitisation in healthcare has had a significant boost which led to a permanent change in the market. Digital healthcare providers are expected to receive investments to scale up.

About the Life Sciences & Healthcare M&A research

Since 2008, Deloitte Corporate Finance has been researching the developments in the mergers & acquisitions market in the Netherlands in the field of Healthcare and Life Sciences. This in-depth market knowledge ensures that we can assist our clients like no other in achieving their ambitions within the Healthcare and Life Sciences sector.

Are you interested in last year's research results? Download the executive summary of the 2020 research here.

 

More information?

For more information about the research, please contact Dagmar Enklaar or Matthijs van Thiel de Vries via the contact information below.

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