Our research shows that 77 private equity groups have acquired or invested in 114 companies in the Healthcare Services industry since the beginning of 2009. According to PitchBook, activity in the industry has been on the rise in the first half of 2010 because many believe the healthcare services industry came out as one of the winners in the new healthcare legislation. The buyers we work with expect demand for healthcare service companies to continue to be strong throughout 2010 and the first half of 2011.

In 2009, 59 transactions involving healthcare services companies were announced. In the first half of 2010 55 healthcare services acquisitions have already been completed. Clinics and Outpatient Services followed by Home Healthcare and Hospice groups have drawn the most interest from private equity investors so far.

During the first half of 2010 there were 27 deals involving Clinics and Outpatient services, followed by Hospitals/Inpatient Services(17) and Elder & Disabled Care (15). The most active private equity investors during this period include Welsh, Carson, Anderson & Stowe (5 deals), Waud Capital Partners(4) and Clearview Capital(3).