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July 2018
Healthcare and Life Sciences Management Consulting
Sectorwatch
M&A activity in the healthcare management consulting space has been particularly strong which is credited to increased healthcare spending, changing regulatory environment, profit margin pressures and increased technological advancement especially in AI and advanced data analytics. Revenue in the healthcare consulting space is expected to increase at an annual rate of 5.1%, reaching $14.9 billion by 2020. There has been a number of acquisitions since the start of 2018 which underlines the overall attractiveness and growth in the sector.
Industry Trends:
- Current revenue growth rate is less than the average of the last 3 years, indicating that the market may be flattening, but the average growth rate is still 5%.
- Current gross profit margin is less than the average of the last 3 years gross profit margins, which may signal pricing pressure.
- Current EBITDA margin is a bit less than the average of the last 3 years, consistent with the contraction in gross margin.
