M&A Update | Healthcare
Table 5: Historical median trading multiples
Managed Healthcare
Average 11.0x
Average 9.5x
Average 0.5x
EV/EBIT
EV/Revenue
EV/EBITDA
10.0x 12.0x 14.0x 16.0x 18.0x
3.0x
10.0x 12.0x 14.0x 16.0x 18.0x 20.0x
2.5x
2.0x
1.5x
0.0x 2.0x 4.0x 6.0x 8.0x
0.0x 2.0x 4.0x 6.0x 8.0x
1.0x
0.5x
0.0x
2014
2015
2016
2017
LTM
2014
2015
2016
2017
LTM
2014
2015
2016
2017
LTM
Home Health and Hospice
Average 16.3x
Average 13.7x
Average 1.1x
EV/EBIT
EV/Revenue
EV/EBITDA
25.0x
3.0x
10.0x 12.0x 14.0x 16.0x 18.0x 20.0x
2.5x
20.0x
2.0x
15.0x
1.5x
0.0x 2.0x 4.0x 6.0x 8.0x
10.0x
1.0x
5.0x
0.5x
0.0x
0.0x
2014
2015
2016
2017
LTM
2014
2015
2016
2017
LTM
2014
2015
2016
2017
LTM
Non-Acute Care
Average 2.0x
Average 11.6x
Average 17.7x
EV/Revenue
EV/EBITDA
EV/EBIT
3.0x
10.0x 12.0x 14.0x 16.0x 18.0x 20.0x
25.0x
2.5x
20.0x
2.0x
15.0x
1.5x
0.0x 2.0x 4.0x 6.0x 8.0x
10.0x
1.0x
5.0x
0.5x
0.0x
0.0x
2014
2015
2016
2017
LTM
2014
2015
2016
2017
LTM
2014
2015
2016
2017
LTM
Long-Term Care
Average 1.5x
Average 12.4x
Average 33.8x
EV/Revenue
EV/EBITDA
EV/EBIT
3.0x
10.0x 12.0x 14.0x 16.0x 18.0x 20.0x
60.0x
2.5x
50.0x
2.0x
40.0x
1.5x
30.0x
0.0x 2.0x 4.0x 6.0x 8.0x
1.0x
20.0x
0.5x
10.0x
0.0x
0.0x
2014
2015
2016
2017
LTM
2014
2015
2016
2017
LTM
2014
2015
2016
2017
LTM
Acute Care
Average 14.1x
Average 8.3x
Average 1.0x
EV/EBIT
EV/Revenue
EV/EBITDA
10.0x 12.0x 14.0x 16.0x 18.0x
3.0x
10.0x 12.0x 14.0x 16.0x 18.0x
2.5x
2.0x
1.5x
0.0x 2.0x 4.0x 6.0x 8.0x
0.0x 2.0x 4.0x 6.0x 8.0x
1.0x
0.5x
0.0x
2014
2015
2016
2017
LTM
2014
2015
2016
2017
LTM
2014
2015
2016
2017
LTM
Source: S&P Capital IQ and Baker Tilly Capital research (April 2018)
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