The valuation of health care companies in Perth are continuing to increase. Morgan Business Sales, one of the largest business brokerage firms in Australia, reports that values have been sharply increasing since 2020.
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"Since 2020, the average EBITDA multiple paid for health related business increased from 5.1 to 13.3x. This growth is quite remarkable and far outpaces any other industry sector" reported Dru Morgan, the Director of Morgan Business Sales.
"For context, this would mean a health business with $10m annual profit would have gone from a $51m valuation in 2020 to a $133m valuation in 2024. An incredible outcome for owners across the industry."
Mr Morgan believed that there were a few industry tailwinds driving this steep growth.
"2020 marked the start of the pandemic which reaffirmed the value of the health sector for investors. This has been compounded further with more recent macroeconomic uncertainty. Our feedback from buyers is that they appreciate the stability that the health care sector offers."
"Building on this further is Australia's ageing population which means the demand for health care services is not going to slow down any time soon".
When queried about what this growth means for owners of health related businesses in Perth, Mr Morgan had the following comment.
"While these multiples are for larger transactions and do vary by sub-industry, there is demonstrated momentum in the industry. It's a great time to be an owner of a health care business in Perth. Provided it is a well run business, there should be plenty of buyer demand should an owner decide to go to market."
About Morgan Business Sales
Morgan Business Sales are Australia's leading Specialist Business Brokers with offices located throughout the country. For the past 25 years, they have sold hundreds of large and small businesses.
Whether looking to buy or sell, they are ready to assist. From business appraisals to mid market sales, their experienced team delivers great results for their clients.
Learn more about Morgan Business Sales via their website here - https://morganbusinesssales.com/business-brokers-perth/
Contact Info:
Name: Dru Morgan
Email: Send Email
Organization: Morgan Business Sales - Western Australia
Address: Suite 75/34 Welshpool Road Welshpool , Perth, WA 6106, Australia
Website: https://morganbusinesssales.com/business-brokers-perth/
Source: PressCable
Release ID: 89127730
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