Specialty Healthcare Services M&A Update

RESOURCE HIGHLIGHTS

• In Q1, the S&P Health Care Services Select Industry Index increased 5.3% but was outperformed by the S&P 500, which increased 10.8% over the same period.
• The median EV/EBITDA multiple for reported strategic deals increased to 16.4x in 2024 from 8.0x in 2023. There were no reported PE multiples in Q1.
• M&A deal volume in the sector decreased 27.9% to 191 completed transactions in Q1 from 265 deals in Q4 and decreased 43.5% from 338 deals in Q1 of the prior year.
• As a % of total capital invested in M&A transactions in 2024, PE participation decreased to 58.0%, down from 60.9% in the prior year.
• North America was the most active region in Q1 with 128 deals. Most notably in the North American market was Australia Future Fund’s $720.0MM investment into Radiology Partners in February 2024.