Q3 2024

Healthcare M&A Update

In Q3, the S&P 500 Healthcare Industry Index increased by 6.3% and outperformed the S&P 500, which increased by 5.3% over the same period.
The median EV/EBITDA multiple for reported private equity deals decreased to 10.4x in 2024 from 17.6x in 2023, but increased for strategic deals to 26.3x from 17.2x in the prior year.
M&A deal volume in the Healthcare sector increased 9.4% in Q3 to 794 deals from 726 deals in Q2, and increased 15.9% from 685 deals in Q3 of the prior year.
As a % of total capital invested in M&A transactions, PE participation increased slightly in YTD Q3 to 20.5% from 18.1% in 2023.
North America was the most active region in Q3 with 429 deals. Most notably in North America was AbbVie’s $8.7 billion acquisition of Cerevel Therapeutics, a Massachusetts-based provider of therapies to treat a range of neuroscience diseases, in August 2024.