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Provident Healthcare Partners Provident Healthcare Partners

Q3 2024 Gastroenterology Update

Provident Healthcare Partners
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Q3 2024 Gastroenterology Update

In the third quarter of 2024, the pace of M&A activity within gastroenterology slowed from the level of volume we have seen over the past few quarters. For private equity-backed acquirers, interest remains high for add-on opportunities, but there are simply less opportunities in the market than there were a few years ago as the sector matures and becomes less fragmented. Some of the more established platforms are also focused on internal initiatives including their own sale processes.

There are still practices of scale that have yet to transact which will be attractive acquisition targets for the existing GI platforms. Provident closed a transaction this quarter advising Albany Gastroenterology Consultants in their partnership with an undisclosed strategic acquirer. This marketing process was highly competitive and garnered interest from a broad list of strategic acquirers, evidence that while transaction volume has slowed, buyer interest remains strong.

For the remainder of the year, Provident expects continued add-on activity and one or two secondary transactions where existing platforms complete a recapitalization. We have also seen consolidators that have traditionally been single-specialty looking to diversify into adjacent specialties. This market shift toward multispecialty platforms will provide a larger buyer pool to Independent practices as well as established platforms looking to recapitalize.

To print and download the full Gastroenterology Update report, please click below…

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