Q4 2023

Healthcare M&A Update

In Q4, the S&P 500 Healthcare Index increased by 6.1% but was outperformed by the S&P 500, which grew 11.2% over the same period.
The median EV/EBITDA multiple for reported private equity deals increased to 17.6x in 2023 from 15.6x in 2022, and increased for strategic deals to 17.2x from 8.5x over the same period.
M&A deal volume in the Healthcare sector increased 16.9% to 801 completed transactions in Q4 compared to 685 deals in Q3, but decreased 5.7% from 849 deals in Q4 of the prior year.
As a % of total capital invested in M&A transactions in 2023, PE participation decreased significantly to 18.1%, down from 35.2% in the prior year.
North America was the most active region in Q4 with 458 deals. Most notably in the North American market was Pfizer’s (NYS:PFE) $43.0 billion acquisition of Seagen in December 2023.