Healthcare Remains the Favourite Sector Among Private Equity
Investors
Private equity investors rank healthcare
companies their top choice for deal activity in the next 12 months,
says a new survey by accountants and business advisors, Grant
Thornton UK LLP.
When asked to select the top three sectors
they would be most active in over the next 12 months, 50% of
respondents from private equity firms pointed to healthcare,
according to the Private Equity Barometer, a quarterly survey
of more than 100 private equity executives. In addition, 52% of
private equity firms cited healthcare as the sector they had been
most active in during the previous 12 months.
In terms of what respondents are prepared to
pay, healthcare is ranked the joint highest sector alongside media
and communications, in relation to earnings. Respondents anticipate
having to pay an 8 times EBITDA* multiple for the deals in their
sector over the next 12 months, the same multiple anticipated for
transactions in the media and communications sector.
David Brooks, corporate finance partner and
healthcare sector specialist at Grant Thornton says: "Despite
looming public sector cuts that will impact demand for good and
services from the private sector, private equity companies remain
unwaveringly confident about healthcare deal activity.
"With one of the highest expectations of
EBITDA multiples when compared to other sectors, private equity
firms are playing it safe, as indicated by the 50% of respondents
that are choosing healthcare as a favourite industry to invest
in.
"Already 2010 has seen the acquisition of Care
UK by Bridgepoint and the continuing buy-and-build of Enara backed
by August Equity," Brooks concluded.
- ENDS -
For further information please contact:
Stephanie Aneto, Grant Thornton press office, 020 7728 2940, email:
stephanie.aneto@gtuk.com
* EBITDA = Earnings before Interest, Taxes,
Depreciation, and Amortization.