Valuations hover at robust levels, while strategic buyers focus on differentiating technologies.
Valuation multiples in the dental products industry are as robust as they have been. This wouldn’t have been evident in December during the market correction, but current public multiples are back to 2017 levels.
Median revenue multiples for public companies are 2.4x and EBITDA multiples are 16.9x. Recent median transaction multiples are 4.4x revenue and 15.2x EBITDA, though these mask significant differences in multiples depending on the market segment within the industry.
Over the past five years our Dental Products Index has risen 148% compared to a 46% increase in the S&P 500.
Acquisition activity in the sector has slowed since a busy summer of 2018, with only six deals announced so far this year, as of April 2019.