Specialty Healthcare Services M&A Update

RESOURCE HIGHLIGHTS

• In Q1, the S&P Healthcare Services Select Industry Index increased by 2.7% and outperformed the S&P 500, which decreased by 4.4% over the same period.
• The Median EV/Revenue multiple for reported strategic deals in the Specialty Healthcare Services sector decreased to 0.6x in Q1 from 1.4x in 2024.
• M&A deal volume in the sector decreased 2.9% in Q1 to 200 deals from 206 deals in Q4 2024, but increased 4.7% from 191 deals in Q1 of the prior year.
• As a % of total capital invested in M&A transactions, PE participation increased in Q1 to 87.2% from 70.2% in 2024.
• North America was the most active region in Q1 with 111 deals. Most notably in North America was The Carlyle Group’s $3.8 billion acquisition of Vantive, an Illinois-based provider of kidney care services, in February 2025.