Q3 2022 Key Highlights

The largest transaction in Q3 2022 and year-to-date was CVS Health’s announced acquisition of Signify Health for $7.3 billion.

Signify Health’s platform combines technology, analytics, and networks to create value-based payment programs. The Company’s network of physicians, nurse practitioners, and physician assistants utilize home-based visits to identify a patient’s clinical and social needs.

Q3 2022 Key Trends

Total transaction volume in Q3 2022 increased by 14 percent over Q2 2022, from 106 to 121.

Total transaction value in Q3 2022 rose by 82 percent over Q2 2022, from $5.1 billion to $9.3 billion.

Regarding notable growth sectors, Healthcare IT volume improved 22 percent, from 46 deals in Q2 2022 to 56 deals in Q3 2022.

Multiples & Value Trends

The median revenue multiple from 2021 through the 1st 3 Quarters of 2022 fell 44 percent, from 4.3x to 2.4x.

The median EBITDA multiple from 2021 through the 1st 3 Quarters of 2022 declined eight percent, from 12.7x to 11.7x.

Top Ten Deals Through Q3 2022

The top ten deals by value have seen three new additions since our half year report: the previously mentioned Signify Health acquisition; McKesson’s announced acquisition of Rx Savings Solutions, a prescription price transparency and benefit insight company, for $600 million; and Cadence Design Systems’ acquisition of OpenEye Scientific, a provider of computational molecular modeling and simulation software, for $500 million.

These three transactions, with an aggregate value of $8.4 billion, represented 32 percent of transaction value in the 1st 3 Quarters of 2022.