M&A activity in the healthcare industry has been on an
upwards trend since our
last update. Good Foundations: Building Healthcare M&A
and Real Estate, a report by Mergermarket on deal-making trends
in the industry, found that about 90% of the respondents expect
healthcare M&A to rise over the next year. The value of
healthcare deals in North America increased by 28% and reached a
total of US$298 billion in 2015.
The North American healthcare industry is rapidly evolving and
demanding that companies innovate to stay relevant. Several
fundamental shifts, such as the move from fee-for-service to
value-based care, are causing healthcare companies to alter their
approach to investments. Technology is also impacting bottom lines,
the provision of healthcare, and M&A activity in the industry.
For instance, the medical devices that provide for safer, less
invasive and more accurate treatments have been a major area of
focus of mergers and acquisitions in the past few years. According
to Mergermarket, medical market devices deals constituted US$57.5
billion in 2015 and the trend is expected to continue throughout
The technological advancements are also causing investors to
take an increasing interest in digital health startups. 87% percent
of the study's respondents expect digital health startups to be
the most sought out targets in 2016, with 71% and 56% holding the
same opinion of hospitals and acute care providers, respectively.
This is supported by the opinion that acquisition of digital health
startups not only provide access to new ideas but also to human
capital. The study also found that that increasing consumer demand
for healthcare products as well as growing scale and keeping
up-to-date with technological updates will be the two biggest
drivers of M&A activity in the industry.
While the healthcare industry is faced with several challenges,
there is also increased opportunity for growth and improvement. In
order to make the most of these advancements, companies must
embrace technology in both biotechnology as well as operational
The author would like to thank Shreya Tekriwal, summer
student, for her assistance in preparing this legal
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Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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