Fri, Apr 12, 2019

Healthcare Services Sector Update - March 2019

Download the Report

The S&P Healthcare Services Index decreased by 5.8% over the last month, while the S&P 500 increased by 1.8% over the same period. 

Over the past month, the best performing sectors were Hospital Vendors (up 10.1%), Behavioral Health (up 5.6%) and Contract Research Orgs (up 4.0%). The sectors experiencing the most decline were Pharmacy Management (down 20.5%), Providers – Other (down 14.8%) and Specialty Managed Care (down 8.0%)

The current average LTM revenue and LTM EBITDA multiples for the Healthcare Services industry overall are 2.27x and 14.3x respectively.

The sectors with the highest valuation multiples include:

  • HCIT (4.14x LTM Revenue, 32.6x LTM EBITDA)
  • Home Health / Hospice (1.91x LTM Revenue, 19.9x LTM EBITDA)
  • Consumer Directed Health / Wellness (4.60x LTM Revenue, 19.3x LTM EBITDA)
  • Healthcare REITS (12.18x LTM Revenue, 18.0x LTM EBITDA)

Read the report for more detail on sector activity.

 Healthcare Services Sector Update March 2019

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 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.

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.