Abundant cash on balance sheets and in private equity dry powder is expected to fuel healthcare M&A activity this year. Hence, investors could invest in quality healthcare stocks UnitedHealth Group Incorporated (UNH), Elevance Health, Inc. (ELV), and CVS Health Corporation (CVS), which witnessed mergers and acquisitions recently. Let’s discuss this in detail.
In 2022, healthcare industry stocks and valuation multiples dropped with the broader market. Despite this, in the second quarter of last year, healthcare M&A remained strong with 17 transactions, including four mega-mergers, making it one of the most active quarters since the COVID-19 pandemic began, according to a report by KaufmanHall.
