The Hidden Risks of Healthcare M&A: How Market Research Can Uncover Them

Healthcare M&A

Mergers and acquisitions (M&A) can be a lucrative way for private equity (PE) firms to invest in the healthcare industry. However, there are also hidden risks associated with the healthcare sector, which must be carefully considered before investing. Market research is essential to uncovering hidden risks in the healthcare industry and ensuring M&A success. Research and data can be your best friends when it comes to understanding regulations, competitors, and future revenue projections. The following is an explanation of how market intelligence can assist and benefit M&A activities. 

Uncovering Regulations

One of the main hidden risks in healthcare M&A is regulatory compliance. The healthcare industry is subject to a variety of regulations at the federal and state level, and PE firms must be aware of these regulations and how they may impact their potential investment. Market research can help PE firms identify potential regulatory hurdles and assess the target company’s compliance with relevant laws and regulations. An analysis of this information can be used to determine whether the target company is in good standing with regulators and whether any potential compliance issues will arise after the acquisition.

Keeping an Eye on the Competition

Another hidden risk in healthcare M&A is market competition. PE firms need to understand the target company’s market position in comparison to its competitors, including their strengths, weaknesses, and growth prospects. Market research can help PE firms determine if the target company is well positioned to grow and compete in the market, and whether it is worth investing in. Through thorough SWOT analyses and extensive company portfolios, iData ensures that all the necessary competitive intel for M&A prospecting can be easily accessed and identified. All in all, this information helps PE firms identify potential threats to the target company’s market position and determine if they can be mitigated.

Into the Future and Beyond

Financial risk is also a significant concern in healthcare M&A. PE firms can use market research to determine a target company’s profitability, margins, and revenue growth over a 10-year period. With metrics including CAGRs, ASPs, and units sold, PE firms are able to comprehend historic and future market data sets to get a better read on the success of the target company. Using this information, PE firms can predict the company’s future growth and assess its financial health. Using the target company’s financial data to identify potential challenges and opportunities, PE firms can make informed investment decisions.


To uncover hidden risks in healthcare mergers and acquisitions, market research is essential. By conducting thorough research and analyzing data, PE firms can gain a comprehensive understanding of target companies and the healthcare industry. By doing so, they will be able to make informed investment decisions, minimize risk, and accomplish their M&A goals. PE firms that ignore the hidden risks in healthcare M&A do so at their own peril, as they risk losing their investment and damaging their reputation. Making an investment in market research can boost the success of healthcare M&As. Don’t miss out on the opportunity to streamline your M&A process with iData – book your demo below to experience the full range of our capabilities.




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