Healthcare Services Sector Update – December 2020 M&A Advisory

or to bookmark this page

Click here to bookmark this page

Click here to remove bookmark

Healthcare Services Sector Update – December 2020

The S&P Healthcare Services Index increased by 7.3% over the last month, compared to the S&P 500 Index, which increased 2.6% over the same period.

Over the past month, the sectors that experienced the most growth were Behavioral Health (up 24.8%), Providers –Other (up 17.1%) and Home Health/Hospice (up 12.2%). The sector that experienced the largest decline was Consumer Directed Health/Wellness (down 2.0%), Distribution (down 1.1%) and Clinical Laboratories (down 1.0%).

The current average Last Twelve Months (LTM) revenue and LTM EBITDA multiples for the healthcare services industry overall are 1.99x and 10.4x, respectively.

Healthcare Services Sector Update - December 2020

The sectors with the highest valuation multiples include:

  • HCIT (4.47x LTM revenue, 30.5x LTM EBITDA)

  • Contract Research Organizations (3.61x LTM revenue, 21.7x LTM EBITDA)

  • Home Health/Hospice (3.22x LTM revenue, 20.0x LTM EBITDA)

  • Consumer Directed Health/Wellness (2.92x LTM revenue, 18.5x LTM EBITDA)

Healthcare Services Sector Update – December 2020 2021-01-18T00:00:00.0000000 /insights/publications/m-and-a/healthcare-services-sector-update-december-2020 /-/media/assets/images/publications/featured-images/2020/healthcare-services-sector-november-2020.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} {DF0A8D82-EB98-4261-8951-BF842E034FA8}

Other Areas We Can Help

Corporate Finance

Comprehensive support throughout mergers and acquisitions and other corporate transactions.

Corporate Finance

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

Healthcare Services Sector Update – January 2021

M&A Advisory
Compliance

Assessing the Value of Compliance Due Diligence in M&A—Insight Into the Challenges and Benefits

Compliance
M&A Advisory

Canadian M&A Insights – Winter 2021

M&A Advisory
M&A Advisory

Staffing Industry M&A Landscape – Winter 2021

M&A Advisory