Q3 2022 Private Equity Industry Trends

Q3 2022 Key Highlights

In the Healthcare vertical, the most active overall acquirers through the 1st 3 Quarters of 2022, either directly or through an affiliated business, were Hg Capital, Main Capital Partners BV, and The Firmament Group with four industry transactions each.

Hg Capital acquired lifeIMAGE; PenRad Technologies; HealthTerm by CareCom; and NextGate Solutions. Capital Partners BV acquired Avancit; Avinty; VideoVisit; and Swedish Care System AB. The Firmament Group acquired Intellis; First Healthcare Compliance; Holliday & Associates; and Panacea Healthcare Solutions.

Q3 2022 Key Trends

Total transaction volume in Q3 2022 decreased by five percent over Q2 2022, from 230 to 219.

Total transaction value Q3 2022 declined by 19 percent over Q2 2022, from $43.2 billion to $35.0 billion.

Multiples & Value Trends

The median revenue multiple from 2021 through the 1st 3 Quarters of 2022 fell by 19 percent, from 4.7x to 3.8x.

Disclosed median enterprise value multiples from 2021 through the 1st 3 Quarters of 2022 were 4.3x revenue and 18.0x EBITDA.

Top Ten Deals Through Q3 2022

The top ten deals by value have seen two new additions since our half year report: Vista Equity Partners’ acquisition of Avalara, which offers tax compliance automation for businesses, for $8.2 billion; and Thoma Bravo’s announced acquisition of Ping Identity, a provider of identity management solutions used by enterprises, for $2.7 billion.

Also of note, Thoma Bravo was responsible for three of the top ten largest deals year-to-date. These three transactions, with an aggregate value of $19.4 billion, represented 13 percent of transaction value in the 1st 3 Quarters of 2022.