Public Healthtech Multiples 2016-2017

Healthtech sales multiples—comparing enterprise value to total annual revenue—dipped below the broader vertical market for the first time in late 2016, but still remains very high around 4.5x. However, EBITDA multiples have been on a rollercoaster ride, bouncing between 15x and 21x before jumping to highs in the last half of 2017.

Healthtech M&A Multiples 2015-2017

Looking more broadly at all disclosed multiples in recent healthtech deals clearly demonstrates the broad range of possible multiples. Note that a logarithmic scale is used in order to better display all data. The highest value deals were dominated by telemedicine, billing and analytics. Teledoc, IBM and private equity firm Thoma Bravo have all made multiple recent acquisitions at over 4x revenue.