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.