Healthcare Services Sector Update - April 2020

The S&P Healthcare Services Index increased 10.9% over the last month, in line with the S&P 500 Index, which increased 12.7% over the same period.

Over the past month, The sectors experiencing the most growth were providers - other (up 33.4%), behavioral health (up 30.4%) and clinical laboratories (up 25.8%). The sectors experiencing the largest declines were healthcare staffing (down 9.3%) and skilled nursing (down 4.2%).

The current average LTM revenue and LTM EBITDA multiples for the healthcare services industry overall are 1.69x and 9.5x, respectively.

Healthcare Services Sector Update - April 2020

The sectors with the highest valuation multiples include:

  • HCIT (4.66x LTM revenue, 21.5x LTM EBITDA)
  • Assisted/Independent living (1.56x LTM revenue, 20.5x LTM EBITDA)
  • Consumer directed health/wellness (2.82x LTM revenue, 19.1x LTM EBITDA)
  • Hospital vendors (1.71x LTM revenue, 19.0x LTM EBITDA)
Healthcare Services Sector Update - April 2020 2020-05-15T00:00:00.0000000 /insights/publications/m-and-a/healthcare-services-sector-update-april-2020 /-/media/assets/images/publications/featured-images/2020/healthcare-sector-update.jpg publication {D59CA77E-C551-45A3-BE89-F567210C5A60} {DC6234F2-03B5-4F3D-9CDE-146A80B170AD} {4DACD310-421A-42AC-BEF4-8AA7E70484CD} {D3AE3EC6-3254-4441-B111-1AF8D558906C} {6B6F3B01-98A6-4BC2-B2CD-CBD127447FB5} {13E28841-C245-441D-8C3B-49E72DA5381C} {9B44E83A-E993-4902-AAE0-82849CEAD728} {5CE144D0-ADDC-43A3-95E4-3428CA819BF8} {DF0A8D82-EB98-4261-8951-BF842E034FA8}

Related Services

Corporate Finance

Comprehensive support throughout mergers and acquisitions and other corporate transactions.

Corporate Finance
M&A Advisory | Corporate Finance | Services

M&A Advisory

Middle-market M&A advisory differentiated by industry expertise and superior deal execution.

M&A Advisory

Transaction Advisory Services

Seamless analytical advisory through the deal continuum, from transaction origination to closing.

Transaction Advisory Services

Financial Sponsors Group

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

Financial Sponsors Group

Insights

M&A Advisory

Growth and Investor Interest in Digital Behavioral Health Solutions

M&A Advisory
Disputes

Pre-Closing MAE/MAC to Post-Closing M&A Purchase Price Disputes

Disputes
M&A Advisory

Healthcare Services Sector Update - Spring 2020

M&A Advisory
M&A Advisory

Japan Transactions Insights - Spring 2020

M&A Advisory