ECG’s Healthcare Mergers and Acquisitions Update for Q3 of 2023 is now available! This edition includes a spotlight on the laboratory sector.
Below are four key takeaways.
- Announced US transaction volume decreased from the prior quarter, with 393 announced transactions in Q3 2023 compared to 464 in Q2 of 2023.
- Notable transactions from the quarter include the following:
- The FTC and DOJ released a draft update of the Merger Guidelines that are used to evaluate mergers. The 13 drafted guidelines include a lower threshold on market concentration and the consideration of a “dominant” organization as one with over 30% market share.
- Within the quarter, an increased number of systems facing financial difficulties decided to sell their laboratory assets. Labcorp was the most active laboratory investor in the quarter, transacting with Jefferson Health, Legacy Health, Baystate Health, and Tufts Medicine.
- Announced US healthcare private equity deals decreased from Q2 to Q3 2023. However, private equity firms continue to make significant investments in healthcare, with multiple deals worth over $1 billion in the quarter.
On October 2, 2023, Sansum Clinic closed its transaction with Sutter Health. ECG served as the exclusive strategic and financial adviser to Sansum Clinic. Learn more about the transaction here.
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Edited by: Matt Maslin
Published October 17, 2023
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