September 30, 2022 – Manhattan Beach, CA and Dallas, TX – Solganick & Co. has published its latest Healthcare IT M&A Update for Q2 2022. It covers the latest mergers and acquisitions transactions in the industry sector.
The Healthcare IT M&A market remained active in Q2 2022, with Solganick & Co. noting numerous strategic and financial transactions despite public market volatility. Solganick & Co.'s Q2 2022 report highlights that healthcare administrative technology commanded the highest Enterprise Value (EV) multiples at 8.6x revenue. This was followed by consumer health at 3.7x and revenue cycle management at 3.4x, indicating strong investor interest in specific sub-sectors.
You can download the full report here: Solganick HCIT Q2 2022
M&A transactions have remained active in the healthcare IT sector in Q2 2022. We noted a number of strategic and financial transactions even though the public markets continued to remain volatile. The highest valuation multiples noted were in healthcare administrative technology, followed by consumer health and revenue cycle management (see chart below for details).
Enterprise Value (EV) Multiple by Healthcare IT Sector
| EV/Rev | |||
| Administrative Technology | 8.6x | ||
| Consumer Health | 3.7x | ||
| Revenue Cycle Management | 3.4x | ||
| Ambulatory and Specialty Providers | 2.4x | ||
| Healthcare Consulting and Business Services | 2.3x | ||
| EHR | 1.9x | ||
| Senior and Post-Acute Providers | 1.9x | ||
| Digital Wellness and DTC | 1.7x | ||
| Remote/ Virtual Care Providers | 1.2x | ||
| Benefits and Distribution | 1.2x | ||
| Acute Care/Hospital Providers | 1.1x | ||
| Traditional Payers | 0.7x | ||
| Tech-Enabled/ Emerging Payers | 0.4x | ||
Solganick & Co. is active in Healthcare IT M&A and has completed multiple transactions with private equity firms as well as strategic buyers and sellers. For more information on our Healthcare IT M&A practice, or to inquire about an M&A opportunity, please contact us.