01 February 2024
613 deals completed in Q4, up 8% on the previous quarter (567 deals). There were 501 trade deals, compared with 476 in Q3, a rise of 5.3%. There were 112 private equity deals, a rise of 23% on the 91 deals seen in Q3. Private equity contributed to 18% of activity, the highest proportion since Q1 2021.
The UK’s Health and Social Care sector continues to demonstrate its resilience and fundamental ability to deliver high quality care for the most vulnerable in society. It has faced significant challenges, including COVID and the recent cost and workforce pressures, and now looks set to deliver the growth in services required to support the strong, underpinned demand. Our health and social care team discuss M&A activity within the sector, key considerations and investor focus for 2024.
Each quarter we collect data surrounding Enterprise Value (EV) to Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) multiples. The Index tracks the EV to EBITDA multiples paid by trade and private equity buyers when purchasing UK private companies.
We examine this market data and compare it with historic data to identify key trends. We draw on our long experience of running the PCPI and our sector-specific expertise to predict future market trends.