GCG’s Q1 2022 Healthcare Industry Update provides an overview of the latest trends in the sector, including recent performance, valuation multiples, and the state of the middle-market M&A environment.
Key findings include the following:
- Q1 2022 saw varying results across the Healthcare industry, with some sectors seeing moderate gains while others observed substantial losses. The industry has been led by the Acute Care sector, which has recorded gains of 104.0% over the last 3 years. The Assisted Living/Long-Term Care sector showed strong performance in Q1, recording an average increase of 20.0% in share price.
- Q1 2022 M&A activity saw a substantial decrease in transaction volume compared to the previous quarter, however, average deal value increased compared to the prior period. The Healthcare Technology category led transaction activity, accounting for 21.1% of total Healthcare volume. The Biotechnology and Healthcare Services sectors were also strong in Q1 with 20.6% and 19.8% of transaction volume, respectively.
- Based on a representative set of publicly-traded companies in the Healthcare industry, public companies traded at an average multiple of 14.6x EBITDA and 3.2x revenue. Additionally, one of the strongest sectors in the Healthcare industry was Medical Equipment with a median multiple of 19.5x EBITDA.
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