Healthcare Services M&A Update - Summer 2022

July 25, 2022

The S&P Healthcare Services Index decreased by 5.9% over the last month, compared to the S&P 500 Index, which decreased by 8.4% over the same period.

Over the past month:

  • The sectors that experienced the largest increase were Healthcare Staffing (up 15.7%), Care Platform (Affiliate-Based) (up 11.6%) and HCIT (up 1.0%).
  • The sectors that experienced the largest decrease were Providers –Other (down 29.6%) Acute Care Hospitals (down 21.7%) and Assisted/Independent Living (down 20.8%).
  • The current average Last Twelve Months (LTM) revenue and LTM EBITDA multiples for the healthcare services industry overall are 2.44x and 14.3x, respectively.

Healthcare Services MA Update Summer 2022

The sectors with the highest valuation multiples include:

  • Consumer Directed Health/Wellness (3.10x LTM revenue, 32.8x LTM EBITDA)
  • Assisted/Independent Living (2.11x LTM revenue, 30.9x LTM EBITDA)
  • HCIT (3.29x LTM revenue, 25.0x LTM EBITDA)
  • Healthcare REITs (11.49x LTM revenue, 19.0x LTM EBITDA)

 

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