These are the cookies we use on our website. You can configure your preferences and choose how you want your data to be used for the following purposes.
Own / Mandatory / Technical
These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences or filling in forms.
These cookies collect information regarding the use of the web page, such as time spent on the page and content visited, to measure its performance and improve navigation.
The close of H1 pointed to a host of headwind risks fading away from the public markets, with all benchmarks and indices we track up 15-30%+ YTD. Our ADH index outperformed the S&P 500 and our horizontal SaaS index by a few percentage points in Q2. It is up 23% for the year. Valuation-wise, our index reached 3.7x LTM revenue, only slightly above the NASDAQ. LTM revenue growth fell to 9% for our index members, although they are slightly more profitable.
For both Digital Health private placements and M&A, deal volume was relatively flat in Q2, but deal sizes have dropped. Total deal value for private placements fell 20% to $3.6B across 250+ transactions. There is evidence in the broader markets that down rounds and insider-led private placements have increased as of late, which may be depressing the average deal size of $14M seen in Q2.
The M&A market for Digital Health recorded a total of $3.3B in deal value, the second-lowest quarter we have seen in at least five years. There was an interesting dichotomy in Q2, whereby mid-size deals were rare but large and small deals remained somewhat flat by volume. The average M&A revenue multiple held flat with Q1 at 5x.