M&A activity in the North American Healthcare sector for Q4 2013 through February 24, 2014 included 469 deals closed according to data provided by S&P Capital IQ. According to a report from industry firm Healthcare Financial Management Association, 2013 was sparked by a heavy wave of consolidation in the healthcare space led by regulatory changes and the implementation of the Affordable Care Act (“Obamacare”). Looking forward to 2014, strong M&A activity is expected to continue as many targets view transactions as the only opportunity to mitigate risk in an ever-evolving environment. This sentiment should be felt throughout the sector with payers, hospitals and other providers looking to join forces as larger biotech giants continue to have an appetite for small operations with significant intellectual property and novel products. Many in the healthcare subsectors will see M&A as an avenue to increase value by offering superior products and services.