Healthcare M&A Update
- The S&P 500 Healthcare Index decreased by 2.3% in Q3 and outperformed the S&P 500, which fell 3.8% over the same period.
- The median EV/EBITDA multiple for reported private equity deals decreased to 13.6x in YTD 2023 from 15.6x in 2022, but increased for strategic deals to 17.7x from 8.5x over the same period.
- M&A deal volume in the Healthcare sector increased 10.7% to 685 completed transactions in Q3 compared to 619 deals in Q2 but decreased 31.4% from 998 deals in Q3 of the prior year.
- As a % of total capital invested in M&A transactions in YTD 2023, PE participation decreased significantly to 23.0%, down from 35.2% in the prior year.
- North America was the most active region in Q3 with 390 deals. Most notably in the North American market was Biogen’s $7.3 billion acquisition of Reata Pharmaceuticals in September 2023.