Healthcare Services Sector Update - Spring 2020 M&A Advisory

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Healthcare Services Sector Update - Spring 2020

The S&P Healthcare Services Index decreased 16.5% over the last month, in line with the S&P 500 Index, which decreased 13.6% over the same period.

Over the past month, the sector experiencing the most growth was HCIT (up 13.7%) and the sectors experiencing the largest declines were Healthcare staffing (down 23.2%), Hospital vendors (down 8.2%) and providers – other (down 6.6%).

The current average LTM revenue and LTM EBITDA multiples for the healthcare services industry overall are 2.45x and 13.9x, respectively.

Healthcare Services Sector Update - Spring 2020

The sectors with the highest valuation multiples include:

  • Home health/hospice (2.36x LTM revenue, 21.6x LTM EBITDA)
  • Assisted/independent living (1.55x LTM revenue, 20.5x LTM EBITDA)
  • Hospital vendors (1.79x LTM revenue, 19.3x LTM EBITDA)
  • Skilled nursing (1.22x LTM revenue, 18.2x LTM EBITDA)
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