Mergers & Acquisitions

Hospital, Clinic, Special Care, Rehabilitation

Within the healthcare industry, hospitals and care institutions represent one of the largest business sectors. Through its innovation and employment intensity it clearly constitutes an important growth opportunity, and with the changing dymnamics of the healthcare sector, an opportunity for integration or consolidation.

Due to demographic changes the number of hospitals, special care and rehabilitation in the economy is expected to increase significantly, as a result of this M&A activities and privatisation this sector is currently undergoing fundamental change. The resulting paradigm shift and the increasing demand for better services have motivated numerous hospitals to enhance their expertise, shifting away from exclusively treating diseases to also emphasise preventive healthcare.

Mergers and acquisitions in the European hospital industry have maintained a robust pace. While scale continues to be an important factor driving M&A, hospitals are now taking a more strategic and selective approach to deal making.

Across Europe, there has been a significant number of deals in this area within the last 3 years.  

Moreover, medical real estate became an attractive area for private equity players. It must be noted, that although the German hospital sector is very profitable in specific niches, foreign investors are currently not entering Germany on a large scale. The fragmented nature of the healthcare sector has created an opportunity for investors to find relevant acquisition. The market dynamics are not the same across Europe, the varying healthcare systems has a large impact on the nature of this market from a M&A perspective.

ConAlliance serves transaction advisory to the hospital industry and is specialised in medium size merger, acquisition and strategic transactions.