Coming trends in healthcare mergers and acquisitions for 2017

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According to Capital One’s annual survey, M&A activity is set to increase.

Capital One released its yearly survey on merger and acquisition activity, illustrating trends and predicting what to expect for the upcoming fiscal year. Over 450 healthcare industry executives responded to the survey.

“With M&A and a strong new business segment outlook, executives are clearly keeping all avenues to growth on the table,” said Al Aria, senior managing director of Capital One Healthcare. “As capital needs rise, it’s critical that companies find financial partners that understand the healthcare marketplace.” Check out some of the other highlights and key points from the report:

  •  Thirty-one percent of executives plan to launch new segments or business lines to drive growth, up from 17% last year.
  •  Thirty-eight percent of the executive respondents report merger and acquisition transactions are driving their growth plans for 2017, a drop from 41% last year.
  • Twenty-six percent of the respondents who said M&A activity would drive their growth in the coming year reported organic growth initiatives as their top strategy.
  • Almost half of the respondents said they expect capital needs to rise in 2017 and 42% expect they’ll require more capital in the year ahead; 25% said the same last year.
  • More than half of all respondents (59%) said ACA changes were their chief concern for 2017, up from 33% last year.
  • Eighteen percent of the respondents said regulatory uncertainty was their top challenge for the year, whereas 33% said the same last year.
  • Ninety-four percent of the executives reported that their business is expected to have a financial performance on par with last year or to perform better.
  • Sixty-one percent of the respondents predict a stronger year in 2017 than 2016; 7% anticipate a weaker financial year in 2017.
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