Q2 2023

Healthcare M&A Update


RESOURCE HIGHLIGHTS

  • The S&P 500 Healthcare index decreased 0.3% in Q2 and was outperformed by the S&P 500 index, which increased 6.1% in the same period.
  • The median EV/EBITDA multiple for reported private equity deals decreased to 9.3x in 1H 2023 from 15.6x in 2022, but increased for strategic deals to 17.2x from 8.5x over the same period.
  • M&A deal volume in the healthcare sector was down 24.3% to 619 completed transactions in Q2 compared to 818 deals in Q1, and 20.6% from 780 deals in Q2 of the prior year.
  • As a % of total capital invested in M&A transactions in 1H 2023, PE participation decreased significantly to 20.7%, down from 35.2% in 2022.
  • North America was the most active region in Q2 with 353 deals. Most notably in the North American market was Merck‚Äôs $10.8 billion acquisition of Prometheus Biosciences in June 2023
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