Sixty percent of health care respondents expect to see private equity play a more competitive role in M&A activity as health providers reposition through the recovery stage. With US$2.8t in dry powder available, including nearly US$1t dedicated to buy-outs, private capital is well-positioned to take advantage of the value creation opportunities during the recovery period.
Meanwhile, of those planning to acquire within the next 12 months, 64% are looking at assets outside of their own countries, but within their immediate regions. Top investment destinations include India, the US, New Zealand, Singapore and Saudi Arabia.
Health care executives will continue to realign strategies to remain resilient and accelerate growth
Since the outbreak of the COVID-19 pandemic, health care has been on the front lines of the crisis. Although the pandemic has negatively impacted revenues and profits across the sector, health care executives appear poised for accelerated change.
The pandemic has served to solidify and accelerate digital transformation and convergence, while at the same time forcing a focus on specific operational and strategic considerations, including supply chain, capacity and technology capabilities.
As 2021 unfolds, health care executives see Europe (38%), Latin America (18%) and India (14%) as key growth markets over the next three years. They will continue to refine and recast their strategies with an eye toward resiliency and long-term growth in a post-pandemic world.