Medical reprocessing market sees renewed growth as healthcare providers face pressures to manage costs and increase sustainability.
The global medical sterilization, repair, and refurbishment industry is expected to reach roughly $13 billion by 2017.1
Revenue multiples in the public markets are currently tracking at a median of 2.1x, while EBITDA multiples have a median of 9.5x. Since the end of 2012, these have grown 31% and 48% respectively.
Transaction multiples are tracking in a similar range, with median revenue multiples of 1.6x and median EBITDA multiples of 8.1x over the past two years. The slight dip in multiples in 2011 and 2012 contributed to a lower median. While the market underperformed the S&P index in 2011 and 2012, recent regulatory pressures for hospitals to cut costs have renewed industry growth.