Q3 2023 Key Highlights

The largest transaction in Q3 2023 and year-to-date was Thoma Bravo’s announced acquisition of NextGen Healthcare for $1.8 billion.

NextGen Healthcare is a leading provider of ambulatory-focused technology solutions. The company’s integrated solutions help increase clinical productivity, enrich the patient experience, and ensure healthy financial outcomes.

Q3 2023 Key Trends

Total transaction value in Q3 2023 rose by 6x over Q2 2023, from $1.3 billion to $7.9 billion.

Total transaction volume in Q3 2023 shifted upward by 2 percent over Q2 2023, from 96 to 98.

Regarding notable growth sectors, Healthcare IT volume improved 6 percent, from 48 deals in Q2 2023, to 51 deals in Q3 2023.

Multiples & Value Trends

The median revenue multiple from 2022 through the 1st 3 Quarters of 2023 fell 12 percent, from 2.4x to 2.1x.

The median EBITDA multiple from 2022 through the 1st 3 Quarters of 2023 increased 23 percent, from 11.7x to 14.4x.

Top Ten Deals Through Q3 2023

The top ten deals by value have seen seven new additions since our half-year report. These include the three largest transactions of the year: the previously mentioned NextGen acquisition; TPG’s announced acquisition of NexTech, a leading provider of clinical and administrative healthcare technology solutions for specialty physician practices; and Fisher Scientific’s announced acquisition of CorEvitas, a provider of regulatory-grade, real-world evidence for approved medical treatments and therapies.

These seven transactions, with an aggregate value of $5.1 billion, represented 48 percent of transaction value in the 1st 3 Quarters of 2023.