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May 2017

Q1 2017 Healthcare M&A Update

Greenwich Capital Group LLC’s Q1 2017 Healthcare M&A Update offers insight into recent trends in the Healthcare industry as well as the state of the overall middle-market M&A environment. The report provides a data-driven analysis on transaction volumes and values, valuation multiples and private equity deal flow.

Key findings include the following:

Middle-Market M&A

  • Q1 2017 transaction volume totaled 6,487 deals that resulted in $35.9 billion of value, representing a 2.2% quarterly increase in volume and 20.4% decrease in value from Q4 2016.
  • Valuation multiples reached an average of 10.3x EBITDA in Q1, a significant increase from 9.4x in the prior quarter. Multiples are anticipated to remain at near recent highs as private equity funds and corporations continue to compete for acquisitions.

Healthcare M&A

  • Healthcare Providers and Services led Healthcare M&A activity in Q1 2017, driven by anticipated payment model changes and regulatory requirements causing physicians to affiliate with larger health systems, sell to larger practices or partner with private equity.
  • Favorable market dynamics drove valuation multiples to 9.6x EBITDA, a 16% increase from 8.3x in Q4 2016.

View the complete Q1 2017 Healthcare M&A Update for a more in-depth analysis of key market trends and observations.