Healthcare continues to be an attractive but challenging area for PE investment. In 2014, investors of all sizes faced steep valuations, thanks to strong fi nancial markets, strategic buyers’ deep pockets and the large number of healthcare investors competing to put dry powder to work. In fact, the average buyout deal size nearly doubled compared with 2013. The shortage of large-scale assets of more than $1 billion persisted; however, there was an uptick in midsize buyouts, and competition for these assets was fi erce. Some auctions for strong assets saw multiple bidders drop out due to steep price expectations. As a result, investors seeking to put their capital to work continued to turn to earlier-stage deals at lower check sizes as well as buy-and-build strategies.
Source : Bain & Company