We are pleased to release our review of M&A and private equity activity across the UK healthcare sector in 2022.
Despite a challenging economic environment, the sector has remained highly active, with both corporate acquirers and private equity actively seeking transactions.
Our report, which can be found below, highlights the most active sub-sectors, along with a month-by-month summary of the key deals across the market.
2022 overview
Despite some of the current negative macro-economic drivers which have impacted M&A activity in other sectors, investment into the healthcare market remained robust in 2022, with both private equity and corporate acquirers actively seeking transactions
With significant capital still to deploy, investors and acquirers view the resilient healthcare market as a “safe home” for their funding during these turbulent economic times
From a sub-sector perspective, there has been a focus on “essential services”, with strong underlying demand drivers and recurring/stable revenues
This has resulted in numerous transactions across clinical services into the NHS, dentistry and residential care – all of which continue to perform strongly
In addition, following the fast-tracked adoption of digital and remote solutions during the pandemic, digital health has continued to thrive throughout 2022
Digital health solutions (either supporting the NHS or offering services direct to consumers) have received significant investment across the year, as they seek to capitalise on the opportunities created by a greater acceptance of technology across the sector
Transactions by month
Private equity investments by sub-sector
Sectors to watch in 2023
Insourced / Outsourced Clinical Services
With NHS waiting lists at all time highs, clinical insourcing and community-based services will be key in addressing the mounting issues
We expect to see strong M&A activity across the sector as acquirers and investors seek to benefit from the significant growth within the market
Specialist Care
The continued resilience and essential nature of the specialist care market will make it attractive during these challenging economic times
Residential care for individuals with learning difficulties or mental health issues, along with complex homecare, will remain active segments
Healthcare Software & IT Services
COVID has fast-tracked the adoption of disruptive software and digital solutions across the NHS and social care sector
With significant government funding allocated to further digitalisation, this will drive appetite from both trade acquirers and investors in the sector
Dental Services
Despite being consolidated by a number of private equity-backed operators, the dental market continues to provide buy and build opportunities due to its fragmented nature
The sector will see further bolt-ons of single practices and small groups in 2023
Occupational Health
An increasing focus on employee health and wellbeing across employers is driving strong growth within the occupational health market
Marlowe have led the way in consolidation, but we expect to see operators from a variety of adjacent sectors entering the market through acquisition in 2023
Children's Services
Despite some negative publicity, there remains a significant requirement for quality private residential children’s homes across the UK
A number of private equity-backed operators will continue to consolidate the market in 2023
The SEN schools market will also remain highly active, with a movement towards day schools