Full Year 2023 Healthcare Industry Trends

2023 KEY HIGHLIGHTS

With an acquisition price of $1.76 billion, Thoma Bravo’s acquisition of NextGen Healthcare, a leading provider of ambulatory-focused technology solutions, was the largest Healthcare transaction in 2023.

The Healthcare IT segment accounted for 49 percent of total transaction volume during the year.

There were 109 financially sponsored transactions in 2023, with an aggregate value of $5.56 billion, representing 30 percent of the total volume and 37 percent of the total value, respectively.

2023 KEY TRENDS

Total transaction volume in 2023 declined by 15 percent over 2022, from 465 to 394.

Total transaction value in 2023 decreased by 48 percent over 2022, from $29 billion to $15 billion.

The median revenue multiple increased from 2.3x in 2022 to 2.6x in 2023. The median EBITDA multiple increased from 11.5x in 2022 to 12.5 x in 2023.

M&A MARKET OVERVIEW

Berkery Noyes tracked 1,400 Healthcare/Pharma Information and Technology transactions between 2021 and 2023, of which 255 disclosed financial terms, and calculated the aggregate value to be $120.22 billion. Based on known transaction values, we project values of 1,145 undisclosed transactions to be $18.31 billion, totaling $138.53 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 3.0x revenue and 11.8x EBITDA.