Healthcare Staffing Market Update: M&A Volume Continues at Rampant Pace

Healthcare Staffing M&A Surges Amid Substantial Labor Shortage

Capstone Partners released its November 2021 Healthcare Staffing Industry Update, reporting that clinician burnout coupled with the resurgence of COVID-19 and Delta variant cases in the summer stressed the capacity of many healthcare providers, with those located in high infection regions experiencing the most significant strain on operations. Workforce management has proven to be a key focus for providers to effectively deliver quality care, with staffing firms playing a critical role in providing labor flexibility.

Merger and acquisition (M&A) volume in the Healthcare Staffing industry has surged through year-to-date (YTD) with 30 transactions announced or completed, already outpacing full year 2020 levels. Capstone expects deal activity to continue at a healthy pace through year end and into 2022 as private equity continues to target the sector and strategics leverage improved balance sheets to reengage in growth initiatives.

Also included in this report:

• Which segments within the industry have demonstrated the strongest performance through YTD
• Commentary on the operating results of leading public companies amid elevated demand
• Analysis of historic M&A valuations and drivers of premium multiples