THE OCCUPATIONAL HEALTH M&A MARKET
According to the Institute of Public Policy Research, presenteeism, or working whilst sick, cost the UK economy £25bn in 2023, whilst absenteeism cost an additional £5bn [1].
To address these challenges, many workplaces now emphasise proactive, value-added services for employee wellbeing and performance, delivered both on-site and online. This shift has spurred growth in the Occupational Health market, attracting significant interest from financial investors and strategic acquirers.
Key growth factors include:
- Embedded Contracts: Occupational health contracts are long-term and integral to business operations, making them hard to replace. Acquiring a strong contracts book enables rapid growth.
- Growing Market: Employee wellbeing is increasingly prioritised in UK boardrooms, yet only about 50% of the workforce uses outsourced occupational health services, with a significant gap in the SME sector.
- Technology: A robust platform enhances service delivery and reduces administrative burdens, driving M&A activity, as larger players seek to acquire tech-enabled innovators to scale quickly.
- Consolidation and Horizontal Expansion: Larger platforms can acquire niche operators to enhance capabilities and leverage cross-selling to up-sell additional services.
- Labour Shortages: Europe faces a shortage of doctors and physicians, making smaller acquisitions vital for quicker staff recruitment.
To learn more about the key M&A trends taking shape this year in the Occupational Health space, read our latest paper.
If you would like to know more about the Occupational Health M&A landscape after reading this paper, or have any other questions on the wider healthcare space, please do get in touch with Al-Munther Sultan. We would be delighted to discuss this report with you, including any implications these current and longer-term market themes may have on your business and overall shareholder objectives.
Sources:
[1] IPPR Revealed: Hidden annual cost of employee sickness is up £30 billion since 2018 | IPPR
