Specialty Healthcare Services M&A Update

RESOURCE HIGHLIGHTS

• In Q2, the S&P Healthcare Services Select Industry Index increased by 1.9%, but was outperformed by a 10.2% increase in the S&P 500 over the same period.
• The median EV/EBITDA multiple for reported private equity deals decreased to 11.5x through 1H 2025 from 14.5x in 2024, while no strategic EV/EBITDA multiples were reported during the period.
• M&A deal volume in the sector decreased 1.5% in Q2 to 197 deals from 200 deals in Q1, but increased 4.2% from 189 deals in Q2 of the prior year.
• North America was the most active region in Q2 with 124 deals. Most notably in North America was Patient Square Capital’s $4.1 billion acquisition of Patterson Companies, a Minnesota-based distributor of dental and veterinary consumables, advanced equipment, pharmaceuticals and diagnostic tools, in April 2025.
• Total capital invested in M&A transactions increased 169.0% in Q2 to $19.1B from $7.1B in Q1 in large part from the Patterson Companies deal mentioned above.