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
In the last 24 months, the medical reprocessing index has seen renewed growth and has outperformed the S&P 500. In the last three years the S&P has increased 23%, while the medical reprocessing index has increased 57%.
Median revenue multiples in the public markets are currently tracking at a median of 2.5x, while EBITDA multiples have a median of 11.9x. Since 2013, these have seen growth rates of 7% and 23%, respectively.
Transaction multiples are tracking in a somewhat lower range, with median revenue multiples of 1.5x and median EBITDA multiples of 8.1x over the past two years. These numbers remain similar to 2013 results.