INDUSTRY FOCUS
HEALTHCARE, BIOTECH & PHARMA
OVERVIEW
The US healthcare sector comprises 890,000 companies with annual revenue of $2.5 trillion. Our healthcare team covers the industries of management services, medical devices, biotechnology and pharmaceutical product manufacturing, and specialized services (aesthetic, ophthalmology, dermatology, orthopedic, dental, chiropractic, dialysis, mental and behavioral health, home care services, oncology, physical therapy, cardiology and OBGYN). We do not cover R&D, trial-based or VC-backed healthcare businesses.
TRENDS & CHALLENGES
In recent years, the healthcare reform has changed how providers are reimbursed for care, creating differentiation on how elective and reimbursed services are managed. The attention has switched to rewarding or penalizing based on efficiency standards and quality of care (pay-for-performance).
FUTURE FORECAST
The US healthcare industry is massive, and is continuing to grow as the population grows, ages and lives longer. Focus has switched to providing patient satisfaction and a better quality of care — which sometimes come at a large cost. Personalized care and technology-enabled care are subsectors that are getting much attention by the private equity investors. With a potential slowdown in the economy and increasing borrowing costs, we do expect elective services to be affected.
INDUSTRY PERFORMANCE
5 to 12X
EBITDA MULTIPLE
1 to 2X
SALES MULTIPLE
Disclosure: These key performance indicators are based on industry averages for a company with $10 million in revenue. The KPIs are not specific to the operational performance of your company or your sub-sector.
The information contained has been obtained from different sources deemed reliable, including DealStats, Deloitte, Dun & Bradstreet, and Business Reference Guide. Pacifica Advisors does not make any representation or warranty as to the accuracy of the data. PA is a mergers and acquisitions (M&A) advisor and business broker.