Bain has published a global healthcare report uncovering some of the areas where private equity investors might find deals. As reported earlier this month, PE is being squeezed out of the hot healthcare sector as M&A activity by strategic investors climbs to unprecedented levels. Bain unearthed a group of global top performers, which it described as large but narrowly focused biopharma and medtech companies.
These are the most profitable of all types and therefore likely targets for PE. Top performers have established strong leadership positions in the biggest categories in which they play. These companies have deeper customer insights, commercial strengths to their size, and they can use their position to make savvy M&A deals. Carve outs were also cited as attractive for PE investors.