Healthcare Staffing Market Analysis – October 2015

M&A activity in this industry has continued to grow as market leaders seek to consolidate this highly fragmented industry.

Revenue multiples in the public markets are currently tracking at a median of 1.2x, while EBITDA multiples have a median of 13.7x.

Transaction multiples are tracking in a higher range, with median revenue multiples of 2.0x and median EBITDA multiples of 19.8x over the past two years.

Brocair’s index of healthcare staffing companies has outperformed the S&P 500 index since 2011. In the last 6 months, the index reached a 10-year high. Share prices have been pushed higher due to increased M&A activity in the space, with two large companies having received takeover offers in the last 3 months.

M&A activity in the space has been robust as a result of the consolidation among larger players in the healthcare staffing industry. Market leaders have also been active in consolidating the highly fragmented industry that consists mainly of small businesses servicing local healthcare facilities.

Dental Services Industry Perspective – October 2015

Dental practices are seeking consolidation to manage costs, expand their service offerings, and spur higher growth rates.

Arriving at a global market size of the dental services industry is hazardous, but information for certain countries is available, and the U.S. is the largest single market world-wide.

Brazil has over 250,000 dentists, representing the greatest number of dentists per capita of any large economy.¹ By comparison, the U.S. has around 186,000 and Japan has over 97,000.^2,3

Dental services consist of all procedures and treatments, both medical and cosmetic, related to the oral cavity and the teeth, and business management solutions targeted towards dental service operations.

The largest segment of the industry is general dentistry, representing over 50% of the global market. This sector includes restorative services, such as dental fillings to restore structure to teeth, dental crowns to protect damaged or decaying teeth, and procedures treating damaged teeth and gums. It also comprises preventive services, from routine dental exams and cleanings, to fluoride and sealant applications, and more commonly, cavity treatments, especially among children. Finally, it includes diagnostics, such as digital radiography and x-rays.