Full Year 2024 Healthcare Industry Trends

2024 KEY HIGHLIGHTS

Clayton, Dubilier & Rice and TowerBrook Capital Partners’ acquisition of R1 RCM, a leading provider of technology-driven solutions that transform the patient experience and financial performance of hospitals, health systems, and medical groups, was the largest Healthcare transaction in 2024, at $6.7 billion.

The largest transaction in the Pharma IT segment during the year was the $1.25 billion acquisition of Model N, a leader in revenue optimization and compliance for pharmaceutical, medtech, and high-tech innovators, by Vista Equity Partners.

There were 102 financially sponsored transactions in 2024, with an aggregate value of $12.9 billion, representing 29 percent of the total volume and 70 percent of the total value, respectively.

2024 KEY TRENDS

Total transaction volume in 2024 declined by 10 percent over 2023, from 391 to 352.

Total transaction value in 2024 increased by 27 percent over 2023, from $15 billion to $19 billion.

The median revenue multiple fell slightly from 2.6x in 2023 to 2.5x in 2024. The median EBITDA multiple decreased from 12.5x in 2023 to 12.2x in 2024.

M&A MARKET OVERVIEW

Berkery Noyes tracked 1,193 Healthcare/Pharma Information and Technology transactions between 2022 and 2024, of which 197 disclosed financial terms, and calculated the aggregate value to be $46.6 billion. Based on known transaction values, we project values of 996 undisclosed transactions to be $15.7 billion, totaling $62.3 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 2.47x revenue and 11.25x EBITDA.