September 27, 2016 – Solganick & Co. has issued its latest monthly M&A update for the HealthTech sector for August 2016.
Overall, both deal activity and deal values have been increasing since Q1 2015. Deal activity within the HealthTech sector in Q2 2016 maintained its record-setting pace. There were 63 M&A transactions in HealthTech in Q2 2016, compared to 56 in Q1, and in Q2 2016, deal value for the industry reached just under $15 billion.
The M&A market in August also demonstrates a promising trend, with significant merger and acquisition activities in HealthTech. While the valuation in the technology sector dropped significantly, HealthTech remained in a similar valuation pattern as previous quarters, and can be expected to continue improving.
Since the end of July, the market valuation of HealthTech have slightly improved in enterprise systems and decision/risk analysis but slightly decreased in medical record systems. The decision/risk analysis EV/Revenue multiple has improved the most from 4.0x (July) to 4.8x (August), a significant increase in a single month. HealthTech M&A seems healthy and is continuing to trend towards higher deal activity and higher deal values.
For more information and to download the complete report, go here: solganick-co-healthtech-monthly-mna-update-august-2016
Solganick & Co. is a fast growing boutique M&A advisory and investment banking firm focused exclusively on technology and digital media companies, including healthtech (healthcare IT).