M&A Sector Watch: 2Q 2018
M&A SECTOR WATCH: 2Q 2018
PONDER & CO. SECOND-QUARTER ANALYSIS:
The median acquisition had 111 target beds and target revenue of $164 million. … The decrease in activity from the first quarter (36 transactions) was nearly 50 percent. That far exceeds the standard correction, about 25 percent, that follows a quarter that exceeds the trailing four-quarter average. … The quarter-to-quarter decrease is the second-largest by percentage since 2000, exceeded only by the fourth quarter in 2009.
LOOKING AHEAD: Ponder expects upcoming quarters to be busy, noting that many organizations are in the early stages of discussions. Letters of intent to merge have been signed by Jefferson and Einstein Healthcare Network in the Philadelphia area, and by Atrium Health and Navicent Health in Georgia. Ochsner Health System is in the final stages of discussions with the State of Louisiana to operate three LSU hospitals. Fairview Health and the University of Minnesota have agreed to expand their affiliation and to rebrand. Cleveland Clinic has pending acquisitions in Florida (Indian River Medical Center and Martin Health System).
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