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Healthcare Sector Shows Strong Transaction Capacity, Report Says

The global healthcare sector will have significant capacity for mergers and acquisitions over the next year, with net debt–to-EBITDA ratios expected to fall by 54 percent over the next year, according to a report from audit, tax and advisory firm KPMG.

Deal appetite and capacity for the world's 1,000 largest companies was higher in June of this year than it was at the same point in 2012, according to KPMG's global merger and acquisition predictor tool. The healthcare industry in North America in particular saw forward price/earnings ratios increase 20 percent and forward net debt-to-EBITDA ratios decrease by 59 percent in June 2013 compared with June 2012.

Analysts expect global healthcare sector P/E ratios to increase by 20 percent over the next year, according to the report.

KPMG's M&A predictor was established in 2007 and helps forecast global trends in mergers and acquisitions by tracking and projecting key indicators one year forward.

More Articles on Mergers and Acquisitions:
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