SHAW & CO LAUNCHES INTERIM ANALYSIS OF HEALTHCARE AND LIFE SCIENCES INDUSTRY

Shaw & Co, the specialist corporate finance advisory firm, has launched an interim analysis of the Healthcare & Life Sciences(H&LS) industry.

The report, which features a summary of M&A deals that have been completed since the launch of Shaw & Co’s annual H&LS report last December, provides SMEs with valuable insight regarding their latest acquisition prospects.

There has been a much higher level of M&A activity within the Healthcare and Life Sciences (H&LS) industry in the eight-month period from November 2021 to June 2022, compared to the 12 months to Nov 2021.Following a strong emergence from the pandemic, long-term commercial rationale for deals is continuing as acquirors look to scale up and green operations. Buyers appear to be eager on broadening their strategic capabilities and are taking advantage of the trading efficiencies associated with a major transaction.

A number of headwinds – rising inflation and the worsening geopolitical situation – mean that the level of M&A activity that has been seen in the last year may not continue however. The report’s key findings include:

• 44 M&A Deals: More deals (44) executed in the eight month period from Nov 2021 to Jun 2022 than in the 12 month period to Nov 2021(13).

• 75% of Buyers From UK: Three-quarters of buyers are based in the UK or have a significant presence in the country. However there are still foreign acquirors looking to invest in UK companies.

• 39% of Deals in the South East: The South East proved popular for deal activity, as it is a major R&D hub for the Life Sciences and Healthcare industry with the ‘Golden Triangle’ of London, Cambridge and Oxford hosting many fast-growth companies and research centres.

• Successful sub-sectors: Sustained high level in M&A activity in the CRO and CMO/CDMO sector as lead service providers look to build end-to-end service models. This can bring opportunities to diversify revenue streams by broadening capabilities.

A full copy of the report is available here.