HGP Health IT Market Analytics

Leveraging HGP’s proprietary Health IT transaction database, HGP Health IT trends and analysis reveal market sentiment in the form of data. HGP’s Health IT Momentum Index is a real-time indicator of valuation and transaction trends, which when paired with other research and market considerations, helps guide transaction and strategic planning.

The Health IT Annualized M&A Volume Index monitors a 6-month moving average of Health IT M&A. The index is based on transaction volume versus value, since volume is less distorted by large transactions.

The Health IT Annualized Investment Value Index tracks an annualized 6-month moving average of Health IT venture capital and private equity investment and is a strong indicator of non-M&A investment activity and trends.

The HGP Health IT Valuation Index vs Public Comps compares the HGP Health IT Transaction Index (as described in the next chart) with Public Enterprise SaaS and Public Health IT Valuations based on an index of companies for each cohort.

The HGP Health IT Transaction Index shows the 6-month moving average for control (M&A and Buyout) Health IT and Health IT-Enabled Services Transactions with a 25th to 75th percentile range.  The chart can be used as an indicator of valuation ranges and trends.

HGP Observations

HGP Observations – May 2024

After Projected Resurgence, Health IT Market Navigates Uncertain Landscape While the JP Morgan Healthcare Conference in January 2023 predicted a market rebound in the second half, a year later, the…

HGP Observations – January 2024

In conversations with PE, sponsors are losing transactions that are trading at 8-10x+ revenue multiples for strong Rule of 40 companies.