Wed, Mar 9, 2022
Healthcare Services M&A Update – January 2022
The S&P Healthcare Services Index decreased by 13.4% over the last month, compared to the S&P 500 Index, which decreased 5.3% over the same period.
Over the past month:
The sectors that experienced the highest growth were consumer directed health/wellness (up 8.5%), assisted/independent living (up 2.6%) and distribution (up 1.0%).
The sectors that experienced the largest decline were providers – other (down 28.0%), behavioral health (down 27.1%) and clinical laboratories (down 18.3%).
The current average Last Twelve Months (LTM) revenue and LTM EBITDA multiples for the healthcare services industry overall are 3.05x and 14.2x, respectively.
The sectors with the highest valuation multiples include:
- Contract Research Organizations (4.56x LTM revenue, 26.7x LTM EBITDA)
- HCIT (4.02x LTM revenue, 21.0x LTM EBITDA)
- Consumer-Directed Health/Wellness (2.92x LTM revenue, 20.7x LTM EBITDA)
- Home Health/Hospice (1.79x LTM revenue, 19.7x LTM EBITDA)
Healthcare Investment Banking
Healthcare expertise for middle-market M&A transactions.
Mergers and Acquisitions (M&A) Advisory
Kroll’s investment banking practice has extensive experience in M&A deal strategy and structuring, capital raising, transaction advisory services and financial sponsor coverage.
Transaction Advisory Services
Kroll’s Transaction Advisory Services platform offers corporate and financial investors with deep accounting and technical expertise, commercial knowledge, industry insight and seamless analytical services throughout the deal continuum.
Fairness and Solvency Opinions
Duff & Phelps Opinions is a global leader in Fairness Opinions and Special Committee Advisory, ranking #1 for total number of U.S. and global fairness opinions over the past 10 years, according to Refinitiv cumulative data from 2013-2022.
Private Capital Markets – Debt Advisory
Kroll has extensive experience raising capital for middle-market companies to support a wide range of transactions.