Full Year 2022 Healthcare Industry Trends

2022 KEY HIGHLIGHTS

CVS Health’s acquisition of Signify Health, a subsidiary of New Mountain Capital, LLC., was one of the largest Healthcare transactions in 2022, with an acquisition price of $7.27 billion.

The Healthcare IT segment accounted for 47 percent of total volume during the year.

There were 135 financially sponsored transactions in 2022, with an aggregate value of $10.05 billion, representing 32 percent of the total volume and 37 percnt of the total value, respectively.

2022 KEY TRENDS

Total transaction volume in 2022 declined by 16 percent over 2021, from 539 to 451.

Total transaction value in 2022 decreased by 71 percent over 2021, from $94.71 billion to $27.78 billion.

The median revenue multiple decreased from 4.2x in 2021 to 2.3x in 2022. The median EBITDA multiple decreased from 12.7x in 2021 to 11.7x in 2022.

Nearly one-third of companies sold in 2022 received transaction values between $3 million to $20 million.

M&A MARKET OVERVIEW

Berkery Noyes tracked 1,545 Healthcare/Pharma Information and Technology transactions between 2020 and 2022, of which 316 disclosed financial terms, and calculated the aggregate value to be $151.30 billion. Based on known transaction values, we project values of 1,229 undisclosed transactions to be $15.46 billion, totaling $166.76 billion worth of transactions tracked over the past three years.

Disclosed median enterprise value multiples for all segments combined in this report during the last 36 months were 3.2x revenue and 14.1x EBITDA.