Returning to Growth in Healthcare Services: How PE Firms Can Best Position Multisite Businesses for Growth

It has been a relatively slow few years for healthcare dealmaking since 2021’s record-setting blitz, where lower multiples and a surge in restructuring has made it difficult to justify and strategize exits. These shakeups, though, create new opportunities for private equity (PE) firms to reinvest prudently, and within the liquidity profile of the business, to maximize enterprise value.

In this article, we take a closer look at today’s economic and political market dynamics and outline ways PE firms can capitalize on existing runway to drive strategic growth and maximize exit values upon the healthcare deal market’s return. Three key priorities for PE firms include:

1. Strategic mergers and acquisitions (M&A). With valuations low across the healthcare industry, the window is wide open for strategic acquisitions via M&A that may provide both growth opportunities and market advantages.
2. De novo expansion. Such expansions may be particularly advantageous in markets with unmet demand and limited competition, as well as reduce potential post-M&A complications.
3. Rationalize operations and assets. Many executives have focused on rightsizing their operations to better match market realities and optimize resources.