US Health Services deals insights: Q2 2019

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In Q2 2019, health services deal volume growth returned

Quarterly deal volumes have been above 200 for almost five years now and Q2 2019’s level was well above the 2014-2018 average. Although there were no megadeals, non-megadeal-related value growth was up over Q1 2019. Overall trading multiples growth continued for the ninth quarter, but Labs / Imaging / Pharmacy multiples continued to decline. Long-term deal drivers remain largely unchanged.

Deal volume growth returned, with deal value growth (excluding megadeals) positive compared to Q1 2019

  • As anticipated, Q2 2019 saw a return to positive quarterly growth (7.3%). For the eighth quarter in a row, deal volume exceeded 250 deals.
  • Although Q2 2019’s deal count represented a 7.3% decline over prior year, the level of 281 was approximately in line with the average of the preceding seven quarters (288).
    • Excluding past megadeals (defined as exceeding $5B):
    • Q2 2019’s deal value was 10.3% higher than the average of the preceding seven quarters.
    • Deal value grew 13.0% over prior quarter and was approximately flat versus prior year (-1.0%).
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Nick Donkar

Health Services Deals Leader, PwC US

Kristan Chesnut

Deals Director, PwC US

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