1st Half 2024 Healthcare Industry Trends

1ST HALF 2024 KEY HIGHLIGHTS

The largest transaction in 1st Half 2024 was Vista Equity Partners’ acquisition of Model N, a leader in revenue optimization and compliance for pharmaceutical, medtech, and high-tech innovators, for $1.25 billion.

1ST HALF 2024 KEY TRENDS

Total transaction volume in 1st Half 2024 remained constant over 2nd Half 2023, from 192 to 191.

In terms of acquirer type, strategic volume increased two percent on a half year basis, from 139 to 142. Private equity volume decreased eight percent, from 53 to 49.

Total transaction value in 1st Half 2024 fell by 41 percent over 2nd Half 2023, from $12.3 billion to $7.3 billion.

The median revenue multiple shifted slightly from 2.6x in 2nd Half 2023 to 2.5x in 1st Half 2024.

M&A MARKET OVERVIEW

Berkery Noyes tracked 1,030 Healthcare/Pharma Information and Technology transactions between 2022 and 1st Half 2024, of which 167 disclosed financial terms, and calculated the aggregate transaction value to be $36.09 billion. Based on known transaction values, we project values of 863 undisclosed transactions to be $14.7 billion, totaling $50.78 billion worth of transactions tracked over the past two and a half years.

Transactions from 1st Half 2022 to 1st Half 2024 with enterprise values in the $10-$20 million range had a median revenue multiple of 2.0x, whereas those above $160 million garnered a median revenue multiple of 4.1x.

Disclosed median enterprise value multiples for all segments combined in this report during the last 30 months were 2.5x revenue and 11.6x EBITDA.