Market Monitor: Healthcare

Market Monitor: Healthcare

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Market Monitor: Healthcare

Making the right decisions for your business starts with having the most accurate and current information available. Our Healthcare Market Monitor keeps you up to date on the events, trends, and market forces that shape and guide the industry.

M&A in Healthcare Services: Q1 2024 Trends

  • U.S. healthcare services M&A activity in Q1 2024 saw a 10.8% decrease in volume compared to Q1 2023, reaching 174 transactions.
  • Despite the overall decline, physician medical groups remained the second-largest segment by transaction volume, highlighting continued consolidation in the sector.
  • The trend towards smaller, add-on deals within physician services suggests a shift in M&A strategy.

Focus on Outpatient Care

  • The healthcare industry continues to prioritize outpatient care due to factors like:
    • Increased cost-effectiveness for both providers and patients.
    • Growing specialization within the medical field.
    • A focus on preventative care and early intervention.

M&A Outlook

While facing challenges like staffing shortages and stricter regulations, the pace of M&A activity is expected to pick up in the healthcare sector. This is driven by:

  • Anticipated interest rate decreases.
  • Rising valuations of public healthcare companies, making them more attractive acquisition targets.
For more information on healthcare M&A trends, visit Healthcare M&A News. 

If you have any questions, please contact our contributors:

Paul Kacik, Managing Director: pkacik@hexagoncapitalalliance.com

Brad Erhart, Director: berhart@hexagoncapitalalliance.com

Daren Oddenino, Director: [email protected]

Market Monitor: Apparel, Accessories & Footwear

Market Monitor: Apparel, Accessories & Footwear

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Market Monitor:
Apparel, Accessories & Footwear

Making the right decisions for your business starts with having the most accurate and current information available. Our Apparel, Accessories and Footwear Market Monitor keeps you up to date on the events, trends, and market forces that shape and guide the industry’s M&A trends.

Activity Heats Up in Apparel, Accessories & Footwear Despite Economic Challenges

Consumers have faced economic headwinds with inflation and high interest rates, leading to a slowdown in Apparel, Accessories & Footwear (AAF) spending in 2023. However, this hasn’t stopped M&A activity in the sector.

Valuation Metrics Rebound

While transaction activity has slowed, valuation metrics for publicly traded AAF companies have rebounded to pre-downturn levels (average of 2021-2023). This suggests continued investor confidence in the long-term potential of strong AAF businesses.

Success Through Strategic Management

Recent earnings reports from Q4 2023 reveal positive surprises from several AAF companies. Notably, casual fashion brands like Gap, American Eagle, Abercrombie & Fitch, and Carter’s exceeded expectations. Additionally, discount retailers like Kohl’s, Burlington, and Dillard’s also reported strong earnings.

A key factor in these successes appears to be effective inventory management, allowing companies to offer competitive prices in a cost-sensitive market.

M&A Outlook: Strong Players Remain Attractive

Well-positioned AAF companies with characteristics like high growth potential, strong margins, and efficient inventory management are likely to remain attractive targets for both strategic and financial buyers. These companies can expect premium valuations in M&A activity.

For more information or questions,  please contact our contributors:

Rich Anderson, Managing Director: [email protected]

Tyler Dale, Managing Director: tdale@hexagoncapitalalliance.com

Johnny Sherwood, Director: jsherwood@hexagoncapitalalliance.com

Brennan Anderson, Vice President: banderson@hexagoncapitalalliance.com

Market Monitor: Outdoor & Recreation

Market Monitor: Outdoor & Recreation

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Market Monitor: Outdoor & Recreation

 Making the right decisions for your business starts with having the most accurate and current information available. Our Outdoor & Recreation  Market Monitor keeps you up to date on the events, trends, and market forces that shape and guide the industry.

Outdoor & Recreation Sector Resilience in 2023

  • Surge in Transaction Volume: Demonstrating resilience, the Outdoor & Recreation sector experienced a surge in transaction volume in the latter half of 2023, rebounding from a slower start earlier in the year.

  • Shift in Deal Dynamics: While fewer major transactions occurred in 2023, there was a healthy number of smaller to medium-sized deals completed in the sector.

  • Divestiture Trend: Notable trend was observed in the divestiture of Outdoor & Recreation brands by former brand consolidators, focusing on core brand and product management strategies.

  • Strategic Buyer Dominance: More than 80% of acquisitions in 2023 were orchestrated by strategic buyers, underscoring the sector’s robust growth.

Investor Confidence and Optimism

  • Discerning Investors: Discerning investors express confidence and optimism through continued minority investments in Outdoor & Recreation sector companies.

  • Positive Momentum: The sector anticipates a trajectory in the first half of 2024, reminiscent of the successful trends observed in the second half of 2023, signaling resilience and potential for continued growth.

  • Proactive Adaptation: Companies are proactively adapting by fine-tuning inventory management and strategically navigating the promotional and marketing landscape for enhanced efficiency.

Anticipated Benefits from the 33rd Summer Olympics

  • Global Spectacle: The eagerly anticipated 33rd Summer Olympics set to take place in Paris this July.

  • Diverse Sports Introduction: Beyond traditional sports, the Olympics will introduce additions such as sport climbing, surfing, and skateboarding.

  • Unparalleled Platform: The Olympics promise to provide an unparalleled platform, offering substantial benefits to brands across the entire Outdoor & Recreation sector.

  • Amplified Exposure: The global spectacle of the Olympics is poised to amplify exposure for the dynamic Outdoor & Recreation segment and its brands.

  • Contributing to M&A Activity: The Olympics contribute to a brighter future for Outdoor Recreation merger and acquisition activity.

For more information or questions, please contact our contributors:

Rich Anderson, Managing Director: randerson@hexagoncapitalalliance.com

Tyler Dale, Managing Director: tdale@hexagoncapitalalliance.com

Johnny Sherwood, Director: jsherwood@hexagoncapitalalliance.com

Brennan Anderson, Vice President: [email protected]

 

Market Monitor: Healthcare

Market Monitor: Healthcare

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Market Monitor: Healthcare

Making the right decisions for your business starts with having the most accurate and current information available. Our Healthcare  Market Monitor keeps you up to date on the events, trends, and market forces that shape and guide the industry.

  • In Q4 2023, U.S. healthcare services Mergers & Acquisitions (“M&A”) volume reached 183 transactions, with a total of 740 closed deals in 2023, representing a 24.4% decrease from 2022. In 2024, there is anticipation for increased M&A activity driven by private equity investors needing to offload assets and deploy capital. The average holding period among U.S. and Canadian private equity funds spiked to 7.1 years in 2023, the longest in 20+ years, paired with a record-high dry powder of nearly $1 trillion.
  • Further, with the Federal Reserve signaling the possibility of three rate decreases in 2024, that will hopefully loosen up the debt markets and drive additional activity.
  • As healthcare organizations have navigated the various challenge in today’s environment, those that have been able to differentiate and traverse the landscape are positioning themselves as prime acquisition candidates for both strategic and financial buyers.
  • In 2024, we see payer and patient pressure continue to drive the shift of care to outpatient settings as organizations continue to bend the cost curve and provide care in the lowest cost setting, and more organizations adopt technologies that create greater efficiencies.

For more information or questions, please contact our contributors:

Paul Kacik, Managing Director: pkacik@hexagoncapitalalliance.com

Brad Erhart, Director: berhart@hexagoncapitalalliance.com

Daren Oddenino, Director: [email protected]

Market Monitor: Outdoor & Recreation

Market Monitor: Outdoor & Recreation

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Market Monitor: Outdoor & Recreation

 Making the right decisions for your business starts with having the most accurate and current information available. Our Outdoor & Recreation  Market Monitor keeps you up to date on the events, trends, and market forces that shape and guide the industry.

  • The outdoor recreation participant base grew in 2022 to a record 168.1 million participants or 55% of the U.S. population ages 6 and older.
  • Transaction volume in the Outdoor & Recreation sector has picked up after a slow first half of 2023.
  • Investors are willing to make minority investments into the space which highlights the newfound resilience of the Outdoor & Recreation sector.

For more information or questions, please contact our contributors:

Rich Anderson, Managing Director: randerson@hexagoncapitalalliance.com

Tyler Dale, Managing Director: tdale@hexagoncapitalalliance.com

Johnny Sherwood, Director: jsherwood@hexagoncapitalalliance.com