“Healthcare companies outperformed the broader market during 2014, and the sector is poised for strong gains in 2015,” according to a new report, “Value Focus: Healthcare Facilities, Year-End 2014” from Mercer Capital. “Transaction activity remains healthy, as industry participants aim to vertically integrate multiple steps of the patient experience, from doctors’ offices to specialists to hospitals.” The report covers legislative updates, macroeconomic trends, industry perspectives and trends, M&A transactions, public company pricing, and more. It also covers valuation trends.
Forward multiples: In terms of EV/Revenue, the report reveals that (excluding healthcare REITs) the subsectors with the highest revenue multiples in 2014 were emergency services centers (2.42x), surgical and rehabilitation centers (2.42x), and dialysis service providers (2.01x). “Forward multiples imply growth in estimated revenues for most sectors during 2015,” says the report. For EV/EBITDA, the subsectors with the highest EBITDA multiples in 2014 were assisted living (17.9x), distribution/supply (14.5x), and physician practice management firms (14.2x). Forward EBITDA is also expected to increase across healthcare facility sectors in 2015.
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