Market Monitor: Healthcare
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Market Monitor: Healthcare
M&A Volume Declines Year-over-Year
Through July 2025, there were 311 U.S. healthcare services M&A transactions, a 23.8% decrease compared to the same period in 2024.
Despite the overall slowdown, two segments stood out:
Home Health & Hospice – benefitting from Medicare Advantage growth and CMS tailwinds related to coverage and reimbursement increases.
Veterinary Services – continues to attract investors as the sector faces less regulatory scrutiny than other provider roll-ups.
Valuation Multiples Remain Strong
Median EV/EBITDA multiples for publicly traded healthcare services companies rose from 12.3x to 13.2x since the start of 2025.
This increase underscores sustained investor appetite for the healthcare sector, even amid reduced transaction volume.
Signs of a Rebound Ahead
The healthcare services sector remains relatively insulated from consumer spending shifts. Several M&A catalysts are expected to drive activity in the second half of 2025:
Accelerated adoption of innovative care technologies
A more stable interest rate environment
Supportive market fundamentals
Abundant dry powder from private equity and strategic buyers
If you have any questions, please contact our Healthcare Services team:
Paul Kacik, Managing Director: pkacik@hexagoncapitalalliance.
Brad Erhart, Director: berhart@