1、Q1 2023Healthcare Market Update&Vertical PerspectivesTABLE OF CONTENTSHEALTHCARE MARKET UPDATE IHEALTHCARE VERTICAL PERSPECTIVESIIHARRIS WILLIAMS UPDATEIIIHARRIS WILLIAMS SECTOR COVERAGEIVPage|2C O N S U M E R P R O D U C T S&S E R V I C E SJan-21Apr-21Jul-21Oct-21Jan-22Apr-22Jul-22Oct-22Economic Ba

2、ckdropUnprecedentedmonetarystimulus,supply chain constraints,and labor dynamicshave resulted in inflationlevels not seen over the last 40 yearsUkraine/Russia conflictcreating heightenedgeopoliticaluncertaintyThe S&P 500 declined 19.4%in 2022,marking a retreat from the benchmarksprior three straightp

3、ositiveyearsThe Fed raised interest rates by a total of 425 basis points in 2022,and uncertainty around future rate hikes has challenged financing marketsHigh-yield bond markets,which typicallyfollow equity trends,as well as the syndicatedloan markets,remain choppyCapital Markets Experienced Rising

4、Volatility Throughout 20221)As of December 2022Notable Statistics Public Market VolatilityFF Rate 50 bpsFF Rate 75 bpsFF Rate 75 bpsFF Rate 75 bpsFF Rate 75 bpsVIXS&P 50019.4%2022 S&P 500 Decline7.1%US CPI-U YoY Change(1)425 bps 2022 Increase in Fed Funds Rate(1)0.4%Consensus 2023 U.S.GDP GrowthFF R

5、ate 50 bpsFF Rate 25 bps2Page|3C O N S U M E R P R O D U C T S&S E R V I C E SInvestors Are Increasingly Selective as M&A Markets Begin to Moderate1)PitchBook data as of 12/31/2022(latest data available);PitchBook middle-market deal size defined as$25M-$1.0B3Deal volume moderated in 2022,and investo

6、rs are picking their spots in 2023.#of Closed North American M&A Transactions by QuarterQ1 2021 Q4 2022($in billions)Moderations in M&A Volume(1)U.S.Leveraged Loan Volume(2)Frothy capital markets and SPAC/IPO crazeRecord Level Of Capital Deployment via M&AVolatile public equity and credit marketsHei