A total of 14 revenue cycle M&A deals worth $310 million occurred over the past twelve months ending on March 31, 2014, according to Greenberg Advisors, an M&A advisory firm that specializes in assisting owners and investors in Revenue Cycle Management (RCM) and related financial services firms. Information and other key data, was compiled from Greenberg Advisors’ proprietary database of M&A transactions.
The M&A activity reflects an industry that is growing, highly fragmented, and includes service and technology companies generating EBITDA margins of 20% to 30% or more. Regulatory and legislative changes including the Affordable Care Act and ICD-10 implementation have also contributed to the type and volume of opportunities. Given all of these attributes, the revenue cycle management segment of the lower middle market is experiencing an M&A renaissance, garnering interest from many strategic buyers seeking expansion and financial buyers seeking entree.
Recent transactions involved Eligibility, Patient Finance, Billing, Insurance Follow Up and Denials Management products/services, among others. According to the their Q1 2014 report, deal values were up 250% with availability of cheap capital for strategic buyers seeking to expand their geographic footprint, service offerings, and/or client base of healthcare providers.
For more information, visit http://www.greenberg-advisors.com/
