Healthcare M&A Activity Surges in Q2

Still. if the cost of capital remains low, Monroe says 2012 M&A activity could end up similar to that of 2011. He says the potential for tax increases could spur end-of-year activity especially in the long-term care category, which is dominated by small, private firms and individuals that may be more interested in cashing in rather than taking the tax hit.

The Levin report separates M&As in the healthcare industry into two segments: healthcare services and technology. Combined the two segments recorded 251 transactions valued at $61.2 billion for second quarter 2012. That compares with 243 deals valued at $73.5 billion for second quarter 2011.

The technology segment, which includes medical devices and pharmaceuticals, continues to dwarf the services segment in the value of its transactions. For second quarter 2012 the technology segment recorded 118 transactions valued at $38.1 billion compared with 104 transactions valued at $66.2 billion during the comparable quarter in 2011.