US health services deals insights: Q3 2016 update

Most deal activity declined in Q3 

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.

Additional insights from Q3

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.

Contact us

Nick Donkar
Partner, PwC’s Deals Practice
Tel: +1 (213) 217 3791

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