The M&A bubble burst in this sector in 2015. At least part of the slow down stemmed from Kindred Healthcare’s (NYSE: KND) $1.8 billion acquisition of Gentiva Health Services in the fourth quarter of 2014. Kindred spent much of 2015 integrating Gentiva’s assets and operations, and didn’t announce a single acquisition all year. Another factor is that valuations were still high in 2015, after a very busy 2014. Amedysis Inc.’s (NYSE: AMED) acquisition of Infinity HomeCare was one of the few deals that reported a price, $63 million, and the target’s financial information. The resulting multiples were 1.3x revenue and 9.8x EBITDA.
