Cherry Tree & Associates | Q2 2023

Cherry Tree & Associates (CTA) has advised entrepreneurs, CEOs, investors, and Boards of Directors for more than 40 years. Each quarter we highlight Animal Health industry performance, transactions, trends, and valuations. We use the CTA Animal Health Index (CAHI) to represent the industry. The CAHI is comprised of over 30 broad, global, public, companies primarily focused on companion animals.

QUARTERLY HIGHLIGHTS

• The Animal Health industry saw a pull back this past quarter.

• M&A and funding activity is at 5+ year lows. 

• Multiples were generally down this past quarter.

• Profitability continues to be valued more than growth. 

• Companies are prioritizing efficient operations and organic growth over risky bets.

Cherry Tree & Associates is a Minneapolis-based private investment banking firm with more than four decades of transaction experience.

Important Disclosures

The information included in this publication has been obtained from public sources and is not based on private or confidential Cherry Tree information. Cherry Tree gathers its data from sources it considers reliable sources such as S&P Capital IQ, Pitchbook and GF Data. However, it does not guarantee the accuracy or completeness of the information provided within this publication. Any opinions presented reflect the current judgment of the author and are subject to change. Cherry Tree makes no warranties expressed or implied, regarding the accuracy of this information or any opinions expressed by the author. This publication does not constitute a recommendation with respect to the securities/financial instruments discussed herein, and it should not be construed as such. This publication has been prepared for informational purposes only and is not intended to provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors to address your specific situation. We undertake no obligation to update any information in this publication. Past performance should not be relied upon as indicative of future performance. The CTA Animal Health Index (CAHI) is a hypothetical index and does not reflect an actual investment portfolio. Comparisons between the CAHI and other indices are for illustrative purposes only. Correlations in performance for the CAHI and other indices should not be relied upon as indicative of risks involved in owning or holding a portfolio of securities similar to the CAHI.