Specialty Healthcare Services M&A Update

RESOURCE HIGHLIGHTS

• The S&P Healthcare Services Select Industry Index decreased by 5.0% and was outperformed by the S&P 500, which increased by 3.0% over the same period.
• The median EV/EBITDA multiple for reported private equity deals increased to 14.5x in 2024 from 8.8x in 2023, and for strategic deals increased to 16.4x from 8.0x in the prior year.
• M&A deal volume in the Specialty Healthcare Services sector increased 6.2% in Q4 to 206 deals from 194 deals in Q3, but decreased 22.3% from 265 deals in Q4 of the prior year.
• As a % of total capital invested in M&A transactions, PE participation increased significantly in 2024 to 70.2% from 23.8% in 2023.
• North America was the most active region in Q4 with 118 deals. Most notably in North America was Clayton, Dubilier & Rice’s $6.3 billion acquisition of R1 RCM, a Utah-based provider of revenue cycle management services, in November 2024.