HBI Deals+Insights / News

Telehealth growth pushing valuations and multiples to new heights

Whilst the number of M&A transactions in the telehealth sector hasn’t seen huge growth, the sector has seen a meteoric rise over the past few years, especially since Covid. In this week’s infographic we look at the growth in revenue of Europe’s largest five telehealth providers and at how the revenue multiples from the valuations telehealth companies receive in M&A transactions has changed.

Click here to see a list of the largest telehealth players in Europe by revenue and here to read our cross-national report on the sector in HBI Intellligence.

The telehealth sector grew especially rapidly in 2021, with many major providers achieving revenue growth of 100% or higher. Two of Europe’s largest players, Doctolib and Teladoc, both managed to double revenue. Multiple smaller nationally-focused players also managed to achieve similar growth. For example, Attend Anywhere, which is the major provider of telehealth services to NHS outpatients in the UK, saw its revenue grow from £4.6m in 2020 to £9.7m in 2021.

Since company valuations are determined more by projections of future earnings than by current or past earnings, it is no surprise that this revenue growth was accompanied by massive growth in EV/revenue multiples in 2021. According to Hampleton Partners’ (a consultancy) Healthtech M&A Market Report 1H 2022, the median EV/revenue multiple across all telehealth M&A transactions globally grew from just 1.2x in the second half of 2020 to 6.8x in the second half of 2021.

The full report can be accessed on Hampleton Partners’ website.

We would welcome your thoughts on this story. Email your views to Martin De Benito Gellner or call 0207 183 3779.