GCG’s Q2 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:
- Q2 2022 saw varying results across the Healthcare industry, with some sectors recording flat performance while others observed substantial losses. Managed Healthcare has been the strongest performing sector over the last 3 years, recording a gain of 95.5%. Medical/Surgical Supply companies have also realized strong gains, posting a 3-year increase of 82.1%.
- Q2 2022 M&A activity saw a substantial decrease in transaction volume compared to the previous quarter. Strategic buyers continue to comprise a majority of the overall deal activity, representing 72.6% of total transaction volume in the quarter. The Biotechnology category led transaction activity, accounting for 20.5% of total Healthcare volume.
- Based on a representative set of publicly traded companies in the Healthcare industry, public companies traded at an average multiple of 12.3x EBITDA and 2.8x revenue in Q2 2022. Additionally, two of the strongest sectors in the Healthcare industry were the Home Care/Hospice and Medical Equipment sectors with a median multiple of 15.1x EBITDA.
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