Rockville, MD – January 18, 2017 – The RCM industry and its vendors are undergoing a transformative consolidation, according to RCM-focused investment bank, Greenberg Advisors, which will publish its 2016 M&A Update next week analyzing M&A activity among vendors to the Revenue Cycle Management (RCM) sector.
Deal activity rose 47% over 2015, with PE buyers and PE-backed strategics completing 69% of all deals. “This reflects the many organic and inorganic growth opportunities present in the healthcare market today,” said Brian Greenberg, CEO of Greenberg Advisors.
M&A activity in 2016 was focused on the consumerism of healthcare, outsourcing trends by providers, and the need for technology solutions to create efficiencies and reduce costs for providers, consistent with the major themes shaping the healthcare revenue cycle today.
Deal value increased by over 300%, fueled in part by a handful of multi-billion dollar deals. “Blockbuster deals may grab the headlines but the majority of the year’s deals were under $25 million. That said, we saw a 56% increase in deals trading for $100 million or more, so the larger deals are definitely out there and trading,” added Greenberg.
Consolidation among providers has forced vendors to offer greater capabilities. This, along with further growth and change expected in the healthcare market, are two of the main reasons Greenberg Advisors expects this level of M&A activity to continue. According to Greenberg, “The market and the players have a tremendous opportunity in this highly pivotal time for providers, payers, and the patients they serve.”
About Greenberg Advisors
Greenberg Advisors, LLC provides trusted M&A and strategic advice within the financial services and business services sectors worldwide. The firm is best known for its expertise in Revenue Cycle Management (RCM), Accounts Receivable Management (ARM), Business Process Outsourcing (BPO), and Specialty Finance. Focused on these interrelated sectors for nearly 20 years, the firm’s professionals offer a comprehensive, yet highly specialized perspective from which to advise clients, which has resulted in the completion of over 125 merger & acquisition (M&A), capital raising, valuation, and strategic advisory transactions. These client successes reflect its distinct client-first approach, objective point of view, deep sector expertise, and roll-up-the-sleeves work ethic. Follow the firm on Twitter @GreenbergAdvsrs.