Healthcare

The healthcare industry is one of the largest sectors of the German economy. It is a growth driver due to its innovative strength and employment intensity. It can be divided into three major sub-sectors: medical care, the industrial health economy, and the other sub-sectors. About 7.5 m people are employed in the health care sector - this corresponds to almost 17% of all employed persons in Germany.

LAST UPDATE

01/10/2021

TYPE

Executive Summary

CONTRIBUTORS

Dr. Nicholas Hanser

Current Developments

A fragmented and crisis-proof market

The topic of health permeates all areas of life and has long since become a megatrend. The advancing age structure and increased health awareness are contributing to the strong growth of the industry. Additionally, the Covid 19 pandemic increased the demand for health products enormously.

Growth Rates

2020

+3.0%

2021

+3.7%

2022

+4.2%

Trends

Privatisation and consolidation

The number of private healthcare providers is increasing, while the number of hospitals overall is decreasing. Larger providers emerge to take advantage of economies of scale.

Transactions

Our Sector Transactions

0

Highlight Transaction

Curasan AG x Donau Invest Beteiligungs-Ges.m.b.H.

Number of M&A transactions - DACH region, 2021 (as of August)

854

Significant Transactions

ICON X PRA Health Sciences (2021)

Avantor® X Ritter GmbH (2021)

Future Trends

Advances in medical technology are creating innovative treatments that enable new medicines and personalised therapies. At the same time, such treatments and medicines are often associated with higher costs and long approval times. In addition, the spectrum of diseases in the population is changing. Chronic diseases such as high blood pressure are becoming more common - mental illnesses are also increasing significantly. This is associated with demanding, long-term and cost-intensive therapies.

Our View

The healthcare market is a growth market. An ageing population and increased health awareness are the main drivers. In addition, technological progress enables the development of new drugs and therapies. At the same time, the industry is struggling with an acute shortage of skilled workers, which is particularly reflected in the nursing professions. There is a trend towards size, which is leading to a consolidation of the fragmented market.

People & Voices

Saxenhammer has in-depth technical and industry knowledge and can draw on a broad network of industry experts with many years of transaction experience.

"The healthcare market in Germany is still very fragmented - financial investors are increasingly looking for opportunities to establish themselves in the market as part of a buy-and-build strategy. The relevance and potential of the market became particularly clear during the Corona pandemic."

Nicholas Hanser

Partner | Head of Technology

Sector Update

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