Healthcare Services Sector Update - July 2021

August 16, 2021

The S&P Healthcare Services Index decreased by 3.1% over the last month, compared to the S&P 500 Index, which increased 1.7% over the same period.

Healthcare Services Sector Update – July 2021

Over the past month: 

  • The sectors that experienced the most growth were Acute Care Hospitals (up 17.2%), Contract Research Organizations (up 5.8%) and Distribution (up 5.5%). 
  • The sectors that experienced the largest decline were Providers – Other (down 24.3%), Telemedicine (down 10.8%) and Home Medical Equipment (down 9.2%). 
  • The current average Last Twelve Months (LTM) revenue and LTM EBITDA multiples for the healthcare services industry overall are 3.46x and 15.5x, respectively.

The sectors with the highest valuation multiples include:

  • HCIT (4.59x LTM revenue, 25.9x LTM EBITDA) 
  • Contract Research Organizations (4.67x LTM revenue, 25.7x LTM EBITDA) 
  • Consumer Directed Health/Wellness (6.83x LTM revenue, 22.2x LTM EBITDA) 
  • Home Health/Hospice (2.70x LTM revenue, 22.0x LTM EBITDA)

Stay Ahead with Kroll

Healthcare Investment Banking

Healthcare expertise for middle-market M&A transactions.

Mergers and Acquisitions (M&A) Advisory

Kroll’s top ranked M&A Advisory practice spans sell-side, buy-side, due diligence, deal strategy and structuring, and capital raising.

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.

Transaction Opinions

Our Transaction Opinions solutions span fairness opinions, solvency opinions, ESOP/ERISA advisory, board and special committee advisory, and complex valuations.

Debt Advisory

Kroll has extensive experience raising capital for middle-market companies to support a wide range of transactions.

Financial Sponsors Group

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