Bain uses cookies to improve functionality and performance of this site. More information can be found in our Privacy Policy. By continuing to browse this site, you consent to the use of cookies.

We have limited Russian content available. View Russian content.

Snap Chart

Megamergers Boost Healthcare M&A to New High

Corporations are using M&A to grow revenue, which public markets prize.

Snap Chart

Megamergers Boost Healthcare M&A to New High
en

The disclosed value of healthcare corporate M&A rose by 25% in 2019, to a new high of $541 billion. Two megamergers—namely, Bristol-Myers Squib acquired Celgene, and AbbVie bought Allergan—totaled $182 billion. We expect brisk deal activity to continue in the near future as public healthcare companies use acquisitions to grow revenue, which public markets continue to reward differentially relative to profit margin expansion. New Bain & Company analysis of S&P Capital IQ data shows that revenue growth accounts for 62% of total shareholder returns over the past five years, a far more important factor than profit margin expansion, which accounts for only 9%.

Nirad Jain and Kara Murphy colead Bain & Company’s Healthcare Private Equity practice.

Read the Report

Global Healthcare Private Equity and Corporate M&A Report 2020

Investors remain eager to pour funds into healthcare, given strong underlying demand and the industry’s resilience at any stage of the economic cycle. Bain's annual report looks at recent trends and the outlook for healthcare investing.

Tags

Хотите продолжить обсуждение?

Мы помогаем мировым лидерам бизнеса решать самые сложные проблемы и находить наилучшие возможности. Работая вместе, мы добиваемся устойчивых положительных изменений и результатов.