Health-Care Dealmaking Slows Amid Inflation, Russian Invasion

Health-care mergers and acquisitions in February dipped to the lowest monthly level since November 2020 amid economic headwinds and uncertainty arising from the Russian invasion of Ukraine.

Rising inflation and interest rates, supply chain problems, and geopolitical uncertainty are leading many investors to take a pause from dealmaking, said Hector Torres of FocalPoint Partners in Chicago.

But despite the recent slowdown, many industry participants expect strong transaction volume in 2022, particularly by private equity firms that continue to raise and sit on record levels of funds, he said.

There were 186 announced or closed deals in February, down from 300 ...