Q4 2024

Healthcare M&A Update

In Q4, the S&P 500 Healthcare Industry Index decreased by 10.2% and was outperformed by the S&P 500, which increased by 3.0% over the same period.
The median EV/EBITDA multiple for reported private equity deals in the Healthcare sector decreased to 11.4x in 2024 from 17.6x in 2023, but increased for strategic deals to 20.9x from 17.2x in the prior year.
M&A deal volume in the sector increased 9.4% in Q4 to 869 deals from 794 deals in Q3, and increased 8.5% from 801 deals in Q4 of the prior year.
As a % of total capital invested in M&A transactions, PE participation increased in 2024 to 25.1% from 18.1% in 2023.
North America was the most active region in Q4 with 438 deals. Most notably in North America was Clayton, Dubilier & Rice’s $6.3 billion acquisition of R1 RCM, a Utah-based provider of revenue cycle management services, in November 2024.