Mon, Jan 18, 2021

Healthcare Services Sector Update - December 2020

Download the Report

The S&P Healthcare Services Index increased by 7.3% over the last month, compared to the S&P 500 Index, which increased 2.6% over the same period.

Over the past month, the sectors that experienced the most growth were Behavioral Health (up 24.8%), Providers –Other (up 17.1%) and Home Health/Hospice (up 12.2%). The sector that experienced the largest decline was Consumer Directed Health/Wellness (down 2.0%), Distribution (down 1.1%) and Clinical Laboratories (down 1.0%).

The current average Last Twelve Months (LTM) revenue and LTM EBITDA multiples for the healthcare services industry overall are 1.99x and 10.4x, respectively.

Healthcare Services Sector Update - December 2020

The sectors with the highest valuation multiples include:

  • HCIT (4.47x LTM revenue, 30.5x LTM EBITDA)

  • Contract Research Organizations (3.61x LTM revenue, 21.7x LTM EBITDA)

  • Home Health/Hospice (3.22x LTM revenue, 20.0x LTM EBITDA)

  • Consumer Directed Health/Wellness (2.92x LTM revenue, 18.5x 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.

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.

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 fairness opinions in the U.S., EMEA (Europe, the Middle East and Africa), Australia and Globally in 2023 according to LSEG (FKA Refinitiv).

Financial Sponsors Group

Dedicated coverage and access to M&A deal-flow for financial sponsors.