Specialty Healthcare Services M&A Update

RESOURCE HIGHLIGHTS

• In Q3, the S&P Health Care Services Select Industry Index increased by 8.3% and outperformed the S&P 500, which increased by 5.3% over the same period.
• The median EV/EBITDA multiple for reported private equity deals decreased to 8.1x in the first nine months of 2024 from 8.8x in 2023, but increased for strategic deals to 16.4x from 8.0x in the prior year.
• M&A deal volume in the Specialty Healthcare Services sector increased 2.6% in Q3 to 194 deals from 189 deals in Q2, but decreased 32.6% from 288 deals in Q3 of the prior year.
• As a % of total capital invested in M&A transactions, PE participation decreased slightly in YTD Q3 to 58.0% from 60.9% in 2023.
• North America was the most active region in Q3 with 124 deals. Most notably in North America was Quest Diagnostics’ $1.0 billion acquisition of LifeLabs, a Toronto-based provider of genetic testing and naturopathic testing, in August 2024.