Commentary by: Eric Murphy, Managing Director, Global Healthcare Services
Kauffman Hall reported in its “Healthcare M&A Activity Report: Q2 2022” that the second quarter of 2022 had 13 announced M&A transactions including, most notably, the merger of Advocate Aurora Health and Atrium Health. The smaller party, Atrium Health, had a total transaction revenue of $12.9 billion, qualifying the deal as a “mega” transaction, which is characterized by Kauffman Hall as a transaction where the smaller party or seller has annual revenues of more than $1 billion. The other mega transaction announced in Q2 2022 was Trinity Health’s acquisition of MercyOne from CommonSpirit Health. The size of these transactions attributed to the doubling of the last year’s average smaller party/seller size for the quarter.
As we have reported over the past 12 to 24 months, the trend will likely continue towards fewer transactions of a greater size. Last quarter was an outlier where no mega transactions were announced, and the average smaller party/seller size was $246 million.
Source: Kaufman, Hall & Associates, LLC
