Cardiology, ophthalmology and oncology/urology have some of the highest earnings before interest, taxes, depreciation and amortisation multiples in today’s market, according to a Nov. 18 report from Focus Investment Bankers.
Here’s a breakdown of average EBITDA multiples, by physician specialty:
- Primary care: Platform deals typically price at eight to 12 times EBITDA (add-ons three to six times), with scaled value-based platforms reaching the low teens.
- Cardiology: Platforms often trade at 12 to 15 times (add-ons eight to 12 times) amid a scarcity of large independent groups.
- Orthopedics/sports medicine: Platforms generally land at nine to 13 times (add-ons six to nine times), supported by ASC and imaging ancillaries.
- Gastroenterology: Platform multiples are commonly 10 to 14 times (add-ons seven to nine times), with endoscopy and ASC ownership lifting valuations.
- Ophthalmology: Platforms range at 12 to 20 times (add-ons seven to 11 times), with retina care supported by recent public-company activity and broader ranges where ASC/clinic density is higher.
- OB-GYN/women’s health: Platforms typically trade 10 to 14 times (add-ons five to eight times). The sector remains active, though the market is showing some multiple compression.
- Plastic surgery/aesthetics: Platforms are often eight to 12 times (add-ons four to eight times); smaller single-site aesthetics can be low- to mid-single digits, while scaled groups can reach high-single to low-double digits.
- Oncology/urology: Platforms commonly price at 14 to 19 times (add-ons eight to 12 times), with oncology precedent transactions reaching approximately 19 times in certain structures and urology showing steady add-on cadence.
