Quarterly Industry Update: Healthcare - Q4 2020

February 23, 2021

Quarterly Industry Update: Healthcare - Q4 2020

Synopsis
6 Minute Read

Healthcare merger and acquisition (M&A) activity in the fourth quarter of 2020 exceeded $8.3 billion in disclosed transaction value across 524 deals in Canada and the US. The average deal size among disclosed transactions was$15.9 million, a slight decline from $18.2 million in the third quarter of 2020. In Canada, the top Healthcare sub-sectors for deal activity in the quarter were pharmaceuticals (16), healthcare technology (13), healthcare services (11)and drug retail (9). Together, these sub-sectors accounted for over 77% of Canadian Healthcare deal volume. In2020, industry EV/EBITDA multiples (based on private equity transactions listed below) increased 27% from the previous year and averaged a multiple of 7.1x for lower mid-market transaction values (10 – 25 million range).

Healthcare merger and acquisition (M&A) activity in the fourth quarter of 2020 exceeded $8.3 billion in disclosed transaction value across 524 deals in Canada and the US. The average deal size among disclosed transactions was$15.9 million, a slight decline from $18.2 million in the third quarter of 2020. In Canada, the top Healthcare sub-sectors for deal activity in the quarter were pharmaceuticals (16), healthcare technology (13), healthcare services (11)and drug retail (9). Together, these sub-sectors accounted for over 77% of Canadian Healthcare deal volume. In2020, industry EV/EBITDA multiples (based on private equity transactions listed below) increased 27% from the previous year and averaged a multiple of 7.1x for lower mid-market transaction values (10 – 25 million range).

Download PDF to view full report

Insights

  • Progress
    ""

    July 22, 2021

    Cloud accounting and bookkeeping can transform your real estate and construction operations

    Priorities are changing after the long hours that came with navigating COVID-19. Here’s how you can free up time to focus on what really matters.

  • Progress
    Family in backyard

    July 21, 2021

    The four key solutions of MNP’s Family Office

    Family office is a term that many people have heard of, but few people understand. Learn more about family office and how it can support your goals.

  • Confidence
    Confident woman

    July 21, 2021

    How a LifeBook can prepare you for twists and turns

    The pandemic has caused many people to reflect about their personal affairs. A LifeBook can help you feel confident that your family will be looked after.