Birth rates are declining globally, dropping by half in just 50 years. Driven by societal and lifestyle challenges to conception, these falling rates mean nearly every country on Earth could have shrinking populations by the end of the century. As people struggle to conceive, fertility services providers have stepped in to help, providing cutting-edge treatments and procedures intended to assist in producing healthy babies. As the industry continues to consolidate and drive growth, two major fertility practices recently joined forces with the assistance of a leading investment bank.
The Center of Reproductive Medicine (CORM) is a nationally-recognized fertility center serving the Houston, Texas region. US Fertility is the largest integrated network of physician-led fertility practices in the United States, born of a 2020 partnership between Amulet Capital Partners, Shady Grove Fertility (SGF), Fertility Centers of Illinois, Reproductive Science Center of the San Francisco Bay Area, and IVF Florida.
The two organizations merged with the assistance of Dresner Partners, a FINRA-registered, middle-market investment bank and Mergers Alliance member firm. The firm provided financial advisory services to CORM during the process of the merger. Dresner Partners offers extensive experience in international and cross-border transactions, and has advised clients throughout the world.
In 2019, the global fertility treatments market was worth $20.39 billion in 2019, projected to grow to $25.7 billion by 2027, according to Allied Market Research. The trend is driven by an increase in the median age of first-time mothers, combined with lifestyle factors that make conceiving more difficult. With the rate of success of IVF treatments sitting at 28% to 35% and most insurers declining to cover fertility treatments, the industry generates substantial revenues worldwide, providing ample opportunities for investors.
Mitchell Stern, Managing Director and Head of the Healthcare Group at Dresner Partners, said, “We are excited that CORM and SGF completed this transaction. CORM and SGF form an excellent team that is focused on providing best-in-class assisted and third-party reproduction. The transaction will further strengthen the US Fertility organization and enhance the company’s long-term growth.”
One can expect the trend of growth and consolidation to continue, given the need for societies to maintain a healthy population of younger people to take care of elders. While reversing the trend will take significant work in both research and public policy, the fertility industry’s continued growth will provide ample opportunity for innovation and investment.