Healthcare Services Sector Update – September 2020 M&A Advisory

or to bookmark this page

Click here to bookmark this page

Click here to remove bookmark

Healthcare Services Sector Update – September 2020

The S&P Healthcare Services Index decreased by 0.1% over the last month, compared to the S&P 500 Index, which decreased 4.6% over the same period.

Over the past month, the sectors that experienced the most growth were Behavioral Health (up 12.2%), Healthcare Staffing (up 8.7%) and Clinical Laboratories (up 6.5%). The sectors that experienced the largest declines were Healthcare Consulting (down 11.0%), Assisted/Independent Living (down 8.7%) and Acute Care Hospitals (down 8.2%).

The current average Last Twelve Months (LTM) revenue and LTM EBITDA multiples for the healthcare services industry overall are 1.79x and 10.6x, respectively.

Healthcare Services Sector Update – September 2020

The sectors with the highest valuation multiples include:

  • HCIT (4.31x LTM revenue, 26.8x LTM EBITDA)
  • Contract research organizations (3.44x LTM revenue, 20.6x LTM EBITDA)
  • Home health/hospice (2.97x LTM revenue, 20.0x LTM EBITDA)
  • Hospital vendors (1.80x LTM revenue, 19.0x LTM EBITDA)
Healthcare Services Sector Update – September 2020 2020-10-16T00:00:00.0000000 /insights/publications/m-and-a/healthcare-services-sector-update-september-2020 /-/media/assets/images/publications/featured-images/2020/healthcare-sector-update.jpg publication {D59CA77E-C551-45A3-BE89-F567210C5A60} {DC6234F2-03B5-4F3D-9CDE-146A80B170AD} {9B44E83A-E993-4902-AAE0-82849CEAD728} {D3AE3EC6-3254-4441-B111-1AF8D558906C} {6B6F3B01-98A6-4BC2-B2CD-CBD127447FB5} {13E28841-C245-441D-8C3B-49E72DA5381C} {5CE144D0-ADDC-43A3-95E4-3428CA819BF8} {DF0A8D82-EB98-4261-8951-BF842E034FA8}

Other Areas We Can Help

Corporate Finance

Comprehensive support throughout mergers and acquisitions and other corporate finance transactions.

Corporate Finance

Transaction Advisory Services

Enable buyers, sellers and lenders to maximize value throughout the transaction process.

Transaction Advisory Services

Financial Sponsor Group

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

Financial Sponsor Group

Private Capital Markets

Senior, subordinated and mezzanine debt and venture/private equity for a wide range of transactions.

Private Capital Markets

Insights

M&A Advisory

Healthcare Services Sector Update – October 2020

M&A Advisory
M&A Advisory

Special Purpose Acquisition Companies (SPAC) Market Report – Fall 2020

M&A Advisory
M&A Advisory

Brazil Transactions Insights – Fall 2020

M&A Advisory