Wave of Healthcare M&A to Continue in 2016, says Survey

January 13, 2016

January 13, 2016.

A survey from KPMG reports that executives and M&A professionals are expecting the wave of healthcare mergers to continue through 2016 as companies aim for geographic and product expansion. Biopharma is expected to be the second busiest sector for consolidation for the second consecutive year, just behind the technology industry.

Fifty-eight percent of healthcare industry respondent said large cash reserves will be the biggest factor to drive deal activity in 2016.  Other reasons include improved consumer confidence (34 percent) and availability of credit (29 percent).  

However, a slow-growth environment was cited by 42 percent of healthcare industry respondents, followed by rising interest rates (32 percent) and availability of credit (29 percent), as factors that could inhibit deal activity. 

The KPMG Mergers & Acquisitions survey collected responses from 553 executives and financial professionals from a variety of sectors, including 137 from healthcare providers, health plans, pharmaceutical companies and medical device makers.