Q1 2024

Healthcare M&A Update

In Q1, the S&P 500 Healthcare Index increased by 6.5%, but was outperformed by a 10.8% increase in the S&P 500 over the same period.
The median EV/EBITDA multiple for reported strategic deals decreased to 13.1x in 2024 from 17.2x in 2023. There were no reported EV/EBITDA multiples for PE buyers in Q1.
M&A deal volume in the Healthcare sector decreased 6.9% to 746 completed transactions in Q1 compared to 801 deals in Q4 and decreased 8.8% from 818 deals in Q4 of the prior year.
As a % of total capital invested in M&A transactions in Q1, PE participation decreased slightly to 17.9%, down from 18.1% in the prior year.
North America was the most active region in Q1 with 418 deals. Most notably in the North American market was Bristol-Myers Squibb’s $14.0 billion acquisition of Karuna Therapeutics in March 2024.