More Public Healthcare Companies Are Getting Bought Out. Here's What PE Firms Are Betting On

Healthcare attorney David Marks was quoted in a Business Insider article discussing the current state of private equity investment in the healthcare industry. The article cited a recent client alert authored by Holland & Knight attorneys John Saran, Doug Wolford and Emily Duncan analyzing scrutiny of these transactions throughout the first half of 2024. Their midyear report comes in the wake of the substantial $8.9 billion acquisition of R1 RCM by two private equity firms, a deal indicative of rejuvenated interest in mergers and acquisitions (M&A) transactions in the sector. Mr. Marks noted news like the R1 RCM deal suggests a promising landscape for healthcare startups to pursue substantial returns through strategic acquisitions. He also noted that the uptick in interest from private equity investors hasn't been deterred by the regulatory scrutiny – at both the state and federal level – highlighted in Holland & Knight's report.

"When I've asked them point blank, they're seeing the regulatory shifts and they know they need to account for it, but it's not really fundamentally changing their investment pool. I think it's just a true, organic interest in the spaces," he said.

READ: More Public Healthcare Companies Are Getting Bought Out. Here's What PE Firms Are Betting On