Healthcare & Human Services Sector Update: Q3 2020
Healthcare & Human Services Sector Update: Q3 2020
M&A Summary & Outlook
Q3 2020 saw North American M&A volume of 2,714 transactions and total deal value of $361.1 billion.
Within the Healthcare sector, there were 156 transactions in Q3 2020, compared to 161 transactions in Q3 2019, representing a 3% decrease from last year. The sector is on pace for 559 total transactions in 2020 compared to last year’s total of 653—a 14% decline largely attributed to effects of COVID-19.
Public Company Performance
Public company EV/EBITDA multiples rebounded to 2019 levels with an average Healthcare multiple of 12.0x in Q3 2020 compared to an average multiple of 11.0x in Q2 2020. The average EV/EBITDA multiple in Q3 2019 was 12.0x.
After Q3 2020, Medical Devices and Specialized Services are the only two out of six Healthcare sub-sectors that have outperformed the S&P 500 over the past five years.