The Future of Healthcare IT: Making Your Middle-Market Company a Prime M&A Target [White Paper]

Across the healthcare IT market, multi-billion-dollar M&A deals were rampant last year. However, in today’s healthcare IT environment, transaction activity is shifting from megamergers to middle-market acquisitions.

While this is allowing middle-market healthcare IT companies to explore sell-side M&A options, many segments of the industry are becoming saturated with similar products, forcing potential M&A targets to bring more substantial and unique value to the market.

For example, although the electronic health records (EHR) market is expected to reach $29.8 billion by 2020, there are now 26 different EHR systems being used in accountable care organizations, according to a recent Grand View Research report.

In this article, SC&H Capital’s Managing Director Christopher Helmrath discusses how middle-market healthcare IT companies can break the trend of creating “me-too” products, allowing them to differentiate their product/service offerings and meet their short-and long-term objectives.

With insight into industry challenges and opportunities in areas such as consumer expectations, big data and technology developments, security, and interoperability, the article explores factors that can enhance value and fulfill industry needs. In the long run, the ideal M&A targets will produce proactive solutions that allow organizations to stay one step ahead of regulatory actions and industry trends.

Ultimately, the article highlights how the companies best positioned for future M&A opportunities will be those that pursue forward-looking and distinct solutions—particularly through preventative wellness and individualized treatments that allow consumers to engage, access, control, and secure their complete health data.

By producing unique solutions that integrate consumer engagement, security, and interoperability, these companies can emerge as prime M&A targets—and the new healthcare IT leaders.

To learn more about how your middle-market company can prepare for an advantageous M&A, employee stock ownership plan, capital raising, or business valuation, contact SC&H Capital here.