Fri, May 15, 2020
Healthcare Services Sector Update – April 2020
The S&P Healthcare Services Index increased 10.9% over the last month, in line with the S&P 500 Index, which increased 12.7% over the same period.
Over the past month, The sectors experiencing the most growth were providers - other (up 33.4%), behavioral health (up 30.4%) and clinical laboratories (up 25.8%). The sectors experiencing the largest declines were healthcare staffing (down 9.3%) and skilled nursing (down 4.2%).
The current average LTM revenue and LTM EBITDA multiples for the healthcare services industry overall are 1.69x and 9.5x, respectively.
The sectors with the highest valuation multiples include:
- HCIT (4.66x LTM revenue, 21.5x LTM EBITDA)
- Assisted/Independent living (1.56x LTM revenue, 20.5x LTM EBITDA)
- Consumer directed health/wellness (2.82x LTM revenue, 19.1x LTM EBITDA)
- Hospital vendors (1.71x LTM revenue, 19.0x LTM EBITDA)
Corporate Finance and Restructuring
M&A advisory, restructuring and insolvency, debt advisory, strategic alternatives, transaction diligence and independent financial opinions.
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.
Financial Sponsors Group
Dedicated coverage and access to M&A deal-flow for financial sponsors.
Distressed M&A and Special Situations
Kroll professionals have advised hundreds of companies, investors and other stakeholders at all stages of distressed transactions and special situations.
Private Capital Markets – Debt Advisory
Kroll has extensive experience raising capital for middle-market companies to support a wide range of transactions.