Q1 2025

Healthcare M&A Update

In Q1, the S&P 500 Healthcare Industry Index increased by 6.1% and outperformed the S&P 500, which decreased by 4.4% over the same period.
The median EV/EBITDA multiple for reported private equity deals in the Healthcare sector increased to 18.3x in Q1 from 11.4x in 2024, but decreased for strategic deals to 8.0x from 20.9x in the prior year.
M&A deal volume in the sector decreased 6.1% in Q1 to 816 deals from 869 deals in Q4 2024, but increased 9.3% from 746 deals in Q1 of the prior year.
As a % of total capital invested in M&A transactions, PE participation increased in Q1 to 40.2% from 25.1% in 2024.
North America was the most active region in Q1 with 438 deals. Most notably in North America was Stryker’s $4.9 billion acquisition of Inari Medical, a California-based developer of medical devices to treat patients suffering from Chronic Venous Disease, in February 2025.