Healthcare M&A Update
- The Healthcare Industry Index decreased 4.4% in Q1 2023 and was outperformed by the S&P 500 index, which increased 7.5% in the same period.
- The median EV/EBITDA multiple for reported PE deals decreased to 9.3x in Q1 2023 from 15.6x in 2022, but increased for strategic deals to 11.6x from 8.5x over the same period.
- M&A deal volume in the healthcare sector was down 3.7% to 818 completed transactions in Q1 2023 compared to 849 deals in Q4 2022 and 12.3% from 933 deals in Q1 of the prior year.
- Total capital invested decreased 27.0% to $63.5 billion in Q1 2023 from $87.0 billion in Q4 and decreased 16.3% from $75.9 billion in Q1 of the prior year.
- North America was the most active region in Q1 2023 with 490 deals. Most notably in North America was the $8.9 billion acquisition of Summit Medical Group by Evernorth Health in January 2023.