By most measures, deal activity in the US health services industry declined in Q3 when compared quarter-over-quarter and year-over-year. The total number of deals decreased to 214, versus 252 in Q2 2016 and 262 in Q3 2015. Total deal value was recorded at $20.0 billion, increasing 23.8% when compared quarter-over-quarter. Although value decreased by 82.0% year-over-year, Q3 2015 is considered an exception compared to other quarters in terms of total deal value.
Deal value growth was largely led by the Hospitals and Labs, MRI & Dialysis sub-sectors.
There were five megadeals announced (exceeding $1.0 billion), totaling $15.1 billion.
The Long-Term Care sub-sector led the market in terms of volume with 69 deals, while the Hospitals sub-sector contributed the most to deal value.
No IPOs occurred during Q3 2016.
The Labs/Imaging sub-sector experienced the highest Mean EV/EBITDA multiple in the LTM 2016 and the Home Health/Hospice sub-sector witnessed the largest change versus LTM 2015.