Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
Q2-Q3 | 2017 HEALTHCARE
Deal Values Remain High Led by Active Strategic Buyers and Private Equity Groups
M&A transaction values have continued to increase across all
subsectors of the healthcare industry in North America, alt-
hough the number of transactions decreased 2.8% in the
TTM (trailing 12 month) period compared to the comparable
period in 2016, which translates into more large deals. Total
investment dollars in healthcare M&A transactions in Q2 and
Q3 were bolstered by several trends including consolidation
transactions, generally higher asset values, and an above aver-
age number of large (greater than $1 billion) transactions.
Public companies, large strategic buyers, and private equity-
backed strategic buyers have been the most acquisitive in Q2
and Q3, and each are utilizing consolidation strategies. Strategic
acquirers in healthcare services, such as health systems, have
historically utilized M&A to build scale and accelerate regional
expansion. Hospital systems in 2017 are merging to streamline
service delivery and reduce costs related to effective care. Con-
solidation in the Medical Equipment subsector had also been
prevalent in Q2 and Q3, generating many large transactions, as
buyers seek products and technologies to expand or comple-
ment existing product portfolios. Overall, the proportion of
M&A transactions by subsector has remained mostly stable. Q2
and Q3 did see increases in deal activity for the Medical Equip-
ment and Healthcare Technology & Consulting subsectors of
12.7% and 0.3%, respectively.
Acquisition strategies for financial buyers and private equity-
backed strategic buyers also include consolidation. Financial
buyers seek to build scale and are increasingly focused on niche,
fragmented submarkets of the healthcare industry, such as be-
havioral health providers. The amount of “dry powder” from
private equity buyers and the need to deploy funds have in-
creased asset values and transaction multiples in Q2 and Q3,
which remain at historically high levels. These activities combine
to create a “sellers’ market.”
Healthcare M&A Transactions by Year (Strategic Buyers Include Private Equity Owned Companies)
1,334 1,259
1,871 1,942 1,905 1,881
3,578
3,006
1,975 1,937 1,886
165 143
177 175 217 249
407
383
256 252 242
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 LTM
# o
f T
ran
sacti
on
s
Strategic Buyer Financial/Private Buyer
Source: EdgePoint Proprietary Database, Company Filings, CapIQ, News Releases
EdgePoint | 2000 Auburn Drive, Suite 330 | Beachwood, OH 44122 | (800) 217-7139 | www.edgepoint.com
Notable Recently Announced and Closed Healthcare Transactions
EdgePoint | 2000 Auburn Drive, Suite 330 | Beachwood, OH 44122 | (800) 217-7139 | www.edgepoint.com
Noteworthy Home Health & Hospice Care Transactions | Q1 - Q2 2017 (continued) HEALTHCARE Q2 - Q3 | 2017
Date: 8/1/2017 (Closed)
inVentive Health is one of the country’s largest clinical and commercial professional ser-
vices companies with 15,000 employees. Its Clinical Research Organization (CRO) pro-
vides drug development services to pharmaceutical, biotechnology, generic drug, and
medical device companies. The Contract Commercial Organization (CCO) offers strategic
and operational expertise to healthcare clients globally, including consulting, sales staff
and training, market access, marketing and branding, and management.
• INC Research Holdings, Inc. will gain significant capabilities in functional service provider (FSP) solutions, organizational scale (22,000+ employees), experience with large pharmaceutical clientele, and therapeutic areas.
Overview / Strategic Rationale: Healthcare Services
Date: 8/9/2017 (Closed)
The Spectranetics Corporation, headquartered in Colorado Springs, Colorado, manufac-tures medical devices used in the treatment of cardiovascular and peripheral arterial conditions in addition to lead technology for the minimally invasive removal of pace-makers. The company has approximately 900 employees.
• Spectranetics’s leading product portfolio will be integrated into Philips’s inter-ventional imaging systems, devices, software, and services segment for en-hanced treatment of cardiovascular treatment.
• Motivation for the acquisition is thought to be the Stellarex drug-coated balloon, which is used for treatment of peripheral artery disease. Stellarex was marked by the Food and Drug Administration for premarket approval in the United States.
Overview / Strategic Rationale:
Date: 5/18/2017 (Closed)
IASIS Healthcare, headquartered in Franklin, Tennessee, operates 17 acute care hospital facilities and one behavioral health facility. The company has annual revenue of approxi-mately $3.2 billion, and has facilities in Utah, Arizona, Texas, Louisiana, and Colorado. The company also offers a Medicaid and Medicare managed health plan.
• Steward becomes the largest private hospital operator in the United States with approximately 37,000 employees and 5,100 physicians.
• The combined entity will include 36 hospitals across 10 states, managed care oper-ations in Arizona, Utah, and Massachusetts, and project combined revenue of $8 billion in 2018.
• In addition to scale, Steward expands its managed risk platform to more than 680,000 new patients.
Overview / Strategic Rationale: Healthcare Services
Date: 7/17/2017 (Closed)
Headquartered in Boston, Massachusetts, Best Doctors, Inc. provides patients with ac-cess to medical experts and physicians for the diagnosis and treatment of illnesses and injuries. Using information technology, patients receive advisory services remotely in order to choose the best healthcare plan, treatments, and providers. The company serves over 40 million customers, and has global offices in Australia, Canada, the Nether-lands, Portugal, Spain, and the United Kingdom.
• Teladoc will acquire a trusted brand, and use its robust and scalable platform to provide access to Best Doctors’ network of renowned experts.
• Best Doctors offers access to best-in-class across 450 different specialties.
Overview / Strategic Rationale: Healthcare Technology & Con-
Acquirer:
Key Metrics:
Combined EV ($M) Combined Revenue Combine EV/LTM Revenue
Target:
$7,000 $3,000
2.33x
Medical Equipment
Acquirer:
Key Metrics:
Implied Enterprise Value ($M) EV/LTM EBITDA EV/LTM Revenue
Target:
$1,956 NA
7.05x
Acquirer:
Key Metrics:
Implied Enterprise Value ($M) EV/LTM EBITDA EV/LTM Revenue
Target:
$440 55.1x
4.5x
Acquirer:
Key Metrics:
Implied Enterprise Value ($M) EV/LTM EBITDA EV/LTM Revenue
Target:
$3,420 20.27x
1.03x
EdgePoint | 2000 Auburn Drive, Suite 330 | Beachwood, OH 44122 | (800) 217-7139 | www.edgepoint.com
Recently Announced and Closed Transactions (select transactions, not intended to be all-inclusive)
Noteworthy Home Health & Hospice Care Transactions | Q1 - Q2 2017 (continued) HEALTHCARE Q2 - Q3 | 2017
Sources: EdgePoint Proprietary Database, Company Filings, CapIQ, News Releases
Closed 9/28/17 Wellstar Enterprises Company Ltd. Cornerstone Healthcare, Inc. - - -
Closed 9/8/17 Biomedical Systems Corporation eResearchTechnology, Inc. - - -
Closed 9/6/17 SinfoníaRx, Inc. Tabula Rasa Healthcare, Inc. 132 - -
Announced 9/1/17 Tenet HealthSystem St. Christopher's American Academic Health System 170 NM -
Effective 8/30/17 Eating Recovery Center LLC CCMP Capital Advisors, LP - - -
Closed 8/18/17 Expedient Medstaff, LLC AHS Staffing, LLC - - -
Announced 8/17/17 Clearcorrect Operating, Llc Straumann Holding AG 150 - YES
Closed 8/11/17 LG Medical Technologies, Inc. Insight Imaging, Inc. - - -
Closed 8/9/17 2M Company & Western Hydro Corp. Sverica Capital Management, LLC - - -
Closed 8/8/17 RN & Allied Specialties, Inc. Aya Healthcare, Inc. $0 - -
Announced 8/8/17 American Medical Response, Inc. Air Medical Group Holdings, Inc. 2,400 - -
Announced 4/4/17 Renton Special Care Community LLC - - - YES
Closed 10/31/17 Sebring Hospital Management Associates HCA Healthcare, Inc. - - -
Closed 9/8/17 WPI Holdings Inc. Convatec Group Plc 121 - YES
Closed 8/7/17 Water Pik, Inc. Church & Dwight Co., Inc. 1,033 12.9 -
Closed 10/6/17 Alere Inc., Triage MeterPro Assets Quidel Corporation 680 - -
Closed 7/13/17 Healthcare Concepts, Inc. Exact Recruiting Solutions, Inc. - - -
Closed 10/31/17 Senior Whole Health, LLC Magellan Healthcare, Inc. 400 - -
Closed 7/10/17 Health Search New England Jordan Medical Consultants, LLC - - -
Closed 5/22/17 American Health Network, Inc. Collaborative Care Services, Inc. 184 - -
Closed 7/13/17 Spirox, Inc. Entellus Medical, Inc. 81 - -
Closed 7/3/17 HD Supply Waterworks Group CONMED Corporation - - -
Closed 7/3/17 Aegis Senior Communities LLC - 10 - YES
Closed 6/29/17 Anesthesia Associates of New London, P.C. Envision Physician Services - - -
Closed 6/26/17 Fresenius Medical Care Holdings, Inc. - 2 - YES
Closed 9/29/17 PAREXEL International Corporation Pamplona Capital Management LLP 5,292 14.6 YES
Closed 6/20/17 Greater Nashville Perinatology, PLC MEDNAX, Inc. - - -
Closed 7/14/17 Best Doctors, Inc. Teladoc, Inc. 440 55.1 -
Closed 6/9/17 Mi Casa Es Su Casa, Inc. Civitas Solutions, Inc. 5 - -
Closed 6/13/17 Advantage RN, LLC Cross Country Healthcare, Inc. 87 8.7 -
Closed 7/18/17 ClearPoint Diagnostic Laboratories, LLC Quest Diagnostics Incorporated - - -
Closed 6/5/17 Tenet Healthcare Corp. - 1,410 - YES
Closed 6/5/17 National Spine & Pain Centers, LLC Avista Capital Holdings, L.P. - - -
Closed 6/1/17 DirectMed Parts & Service, LLC Mercury Partners - - -
Announced 1/22/15 AdCare Health Systems, Inc. - 5 - YES
Closed 9/29/17 IASIS Healthcare LLC Steward Health Care System, LLC - - -
Closed 5/9/17 AKSM, Ltd. United Medical Systems (DE), Inc. - - -
Closed 5/17/17 Northwest Urological Services, LLC - - - YES
Closed 10/2/17 Hamilton U.S. Holdings, Inc. American International Group, Inc. 110 - -
Announced 5/10/17 Adirondack Tri-County Nursing And Rehab. 112 Ski Bowl Road Operating Co. LLC - - -
Closed 5/8/17 River Vision Development Corp. Horizon Pharma Public Limited Company 152 - YES
Closed 5/29/17 Quantum International Income Corp. - 0 - YES
Closed 5/4/17 WOUND&SKINEXPERTS LLC KG Health Partners, Inc. - - -
Closed 5/3/17 Thaxton Barabe American Healthcare Staffing, LLC - - -
Closed 5/1/17 The Columbus Organization, LLC HealthEdge Investment Partners, LLC - - YES
Closed 5/2/17 ThreeWire, Inc. WIRB-Copernicus Group, Inc. - - -
Closed 6/16/17 Span-America Medical Systems, Inc. Savaria Corporation 81 10.1 YES
Closed 4/28/17 Invo HealthCare Associates, Inc. The Jordan Company, L.P. - - -
Announced 6/21/17 ProPhase Labs, Inc. - 1 - YES
Closed 4/25/17 Braunger Foods, Thompson, Variety Foods Germain & Co., Inc. - - -
Announced 4/6/17 New England Baptist Hospital Inc. Beth Israel Deaconess Medical Center - - YES
Closed 4/18/17 Exact Recruiting Solutions, Inc. Simione Healthcare Consultants, LLC - - -
Closed 4/17/17 Southwestern Eye Center, Ltd. H.I.G. Capital, LLC - - -
Closed 4/6/17 Medical Arts Dermatology PA Epiphany Dermatology PA - - -
Closed 4/6/17 Medical Arts Dermatology PA Epiphany Dermatology PA - - -
Closed 4/4/17 Kissito PACE of Roanoke, Inc. InnovAge Home Care - - -
Announced 6/1/17 St. Anthony's Medical Center Mercy Health - - -
Effective 5/3/17 Caisson Interventional, LLC - 3 - YES
Cross-
Border
Announced/
Closed Date Target Buyers / Investors
Price
(MM USD)
EV/EBITDA
Multiple
The majority of transaction activity in the healthcare industry during the last twelve months and in Q2 and Q3 of 2017 oc-curred in three primary sub-sectors. Healthcare Technology & Consulting (37.4%), Medical Equipment (27.9%), and Medical Diagnostics (19.7%) accounted for 85% of all announced and completed transactions in the healthcare industry during the last twelve months.
As evidenced in the table below (“Select Transaction Multi-ples”), transaction values across key sub-sectors of the industry continue to trend higher as strategic consolidators aggressively bid for quality acquisition targets, often paying a premium with respect to historical averages. The average reported EV/EBITDA
multiple for publicly held healthcare companies increased over the last 12 months compared to 2016. This growth further high-lights the willingness of the market to aggressively pursue high quality targets in both public and private sectors, despite mounting regulatory and tax uncertainties.
Strategic and private equity-backed operating companies ac-counted for the majority of transaction activity during the last twelve months (88.5%, slightly up from 88.6% during 2016). These buyers continue to utilize M&A as a primary driver of val-ue creation for shareholders by increasing scale, service delivery capabilities, technological advances, and market exposure through targeted acquisitions.
Key Metrics
EdgePoint | 2000 Auburn Drive, Suite 330 | Beachwood, OH 44122 | (800) 217-7139 | www.edgepoint.com
HEALTHCARE Q2 - Q3 | 2017
Transactions by Sub-Sector (LTM) Share of Transactions by Buyer Type
Select Transaction Multiples
Source: EdgePoint Proprietary Database, Company Filings, CapIQ, News Releases
Source: EdgePoint Proprietary Database, Company Filings, CapIQ, News Releases
0.0x
20.0x
40.0x
60.0x
80.0x
100.0x
120.0x
Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17
EB
ITD
A M
ult
iple
Healthcare Services
Home Health & Hospice
Medical Diagnostics
Medical Equipment
Healthcare Technology & Consulting
88.3% 89.8% 88.7% 88.5% 88.5% 88.6%
11.7% 10.2% 11.3% 11.5% 11.5% 11.4%
0%
20%
40%
60%
80%
100%
2012 2013 2014 2015 2016 LTM
% o
f T
ran
sa
cti
on
s
Strategic Buyer Financial/Private Buyer
12.0%
2.9%
19.7%
27.9%37.4%
Healthcare Services
Home Health & Hospice
Medical Diagnostics
Medical Equipment
Healthcare Technology &Consulting
EdgePoint | 2000 Auburn Drive, Suite 330 | Beachwood, OH 44122 | (800) 217-7139 | www.edgepoint.com
Noteworthy Home Health & Hospice Care Transactions | Q1 - Q2 2017 (continued)
The outsourced medical staffing subsector of the healthcare services industry saw a number of transactions from strategic buyers in Q2 and Q3 2017, continuing a trend from the second half of 2016 and Q1 2017. Two public companies, Mednax and Envision, have unquestionably been the most acquisitive in 2017, with five acquisitions each. Acquisitions by these large staffing businesses also include specialty service practices. American Healthcare Staffing Group also made two acquisitions in Q2 and Q3, with backing from the private equity firm BelHealth Investment Partners. In addition to strategic buyers and private equity-backed strategic buyers, financial buyers such as Harren Equity, TPG Growth, and Platform Partners have also made investments in the space.
Since the passing of the Affordable Care Act, healthcare labor shortages have become a major concern for institutions. Healthcare delivery organizations struggling to properly staff facilities are increasingly turning to third-party staffing compa-nies for human capital. Healthcare labor shortages span the breadth of credentialed clinicians, including doctors, nurses, therapists, technicians, and others.
The Bureau of Labor Statistics is predicting significant increases in the staffing shortage by 2025. Buyers are looking to acquire companies with access to staff to support their clients and is-sues related to the labor deficit. In addition to qualified employ-ees, buyers are seeking to expand service portfolios. With the increasing specialization of healthcare, staffing companies must offer clients a diverse array of credentialed professionals.
According to SIA, the U.S. medical staffing industry is expected to grow 7.0% in 2017. M&A transactions in the Medical Staffing subsector reflect this growth. Healthcare staffing transactions are on pace to exceed 2016, and attractive M&A valuations are pulling acquisition targets into the market. According to Capital IQ, public healthcare staffing companies’ average EBITDA multi-ple exceeds general staffing firms by almost an entire turn of EBITDA.
Continued deficiencies in the supply of credentialed medical professionals and increasing specialization of the workforce should lead to a robust M&A market for the remainder of 2017 and 2018 in the Healthcare Staffing subsector.
HEALTHCARE
Sub-Sector Profile: Medical Staffing
Q2 - Q3 | 2017
Active Healthcare Staffing Buyers
9/28/2017 6/20/2017 3/23/2017 3/13/2017 2/6/2017
Date of Investment Select Strategic Buyers Acquisition Activity
7/5/2017 5/3/2017
• Expedient Medstaff • Thaxton Barabe
7/5/2017
6/29/2017
3/7/2017
1/6/2017
1/4/2017
• Infinity Healthcare, Inc.
• Anesthesia Associates of New London PC
• Imaging Advantage LLC
• Emergency Professional Services PC
• Sunshine Radiology LLC
Select Financial Buyer with Holdings
• Jefferson Radiology PC/Jefferson Imaging Associates LLC • Greater Nashville Perinatology Plc • Bruce E. Snyder, M.D., PLLC • Midwest Perinatal Associates, P.A • Newborn Intensive Care Specialists P.A.
8/16/2017 2/1/2017 1/4/2017 10/17/2016 8/17/2016
Investment Acquisition Activity
• Integrated Care Physicians, Inc. • American HealthCare Staffing Association, LLC • Care Advantage, Inc. • AHS Staffing, LLC • ABD Group, Inc
Staffing deficits in the healthcare industry are historically sup-plemented by healthcare staffing companies. The flexible nature of contract employees allows healthcare providers to match supply and demand. However, when medical professionals are not available, in rural areas for example, telemedicine can be used to supplement traditional healthcare service providers. The use of telemedicine provides access to services that were previously unavailable, and further contributes to market effi-ciencies and maximization of resources. Two leaders in this rap-idly growing space are Teladoc and Best Doctors.
Teladoc, the country’s first and largest telehealth platform, offers on-demand healthcare services to 20 million subscribers. Patients connect with physicians and behavioral health profes-sions to diagnose and treat conditions using digital devices and the Internet.
In 2017, the company is poised to reach revenue of $231-$233 million and has achieved an 80% CAGR since 2013, including year-to-date results. Growth, in part, will be due to the $440 million acquisition of Best Doctors.
With the acquisition of Best Doctors, Teladoc will command 75% of the telehealth market share. Best Doctors will account for approximately $100 million in revenue. Strategic ramifications are much more significant, including:
• Global Access: Best Doctors operates in 100 countries and generates 40% of revenues outside of the United States.
• Best Doctors’ network of doctors exceeds 50,000 and offers 450 specialties.
• Expanded Primary Care Services: Best Doctors will help ex-pansion into behavioral health, dermatology, tobacco cessa-tion, and sexual health.
• IBM Watson Deal: Best Doctors formed an agreement to utilize Watson (the supercomputer) for oncology clinical decision support.
• Profitability: The combined entities will have a higher reve-nue per subscriber, which will help Teladoc achieve break-even status.
This merger will aid Teladoc’s continued dominance of the tele-health market. From a global perspective, the convergence of traditional healthcare services and technology will help healthcare service organizations to treat patients more effec-tively and efficiently while reducing delivery costs.
Teladoc/Best Doctors Deal: Consolidation in Technology-Enabled Healthcare
EdgePoint | 2000 Auburn Drive, Suite 330 | Beachwood, OH 44122 | (800) 217-7139 | www.edgepoint.com
HEALTHCARE Q2 - Q3 | 2017
Source: CapIQ, Company Filings, News Releases
“Today we take a tremendous step forward as we continue to deliver on our promise to transform the healthcare experience.”
-Source: Jason Gorevic, CEO
“The acquisition literally opened up a whole new world for us. It allows us to expand in a lot of new directions.”
-Source: Dan Trencher, SVP of Product and Corporate Strategy
“Strategically, Best Doctors further expands TDOC’s position in the virtual health market, provides a sig-nificant cross-sell opportunity, and appears highly complementary from an operations/sales perspec-tive.”
-Source: Matthew Gillmor, Baird Institutional Equi-ties and Research SVP
0
1
2
3
4
5
6
7
8
2013 2014 2015 2016 2017 2018E
Telehealth Subscribers (in millions)
You have had a lot of involvement with PE backed companies.
Please describe how you got involved with private equity groups
(PEGs).
As a senior executive at MedSource Technologies, which was PE
backed, we went public and then got bought out by private equity
again. I worked with several PEGs during that time. Afterwards,
many of the executives that I worked with went on to lead private
equity backed medical device focused companies, as did I.
Please describe your roles working with PEG backed companies,
particularly in the medical device or contract manufacturing in-
dustry, which you have considerable experience.
I have been a CEO of PEG backed companies, where there was a
desired or needed transition from the legacy CEO or owner. I have
also been a board advisor, where I have operated as a board mem-
ber to mentor and assist the existing executive team. I can also
function as an outside consultant through my firm, Acceleration
Medtech.
Can you give some specific examples of the impact you have had
from your involvement in businesses acquired by PEGs?
In several of the companies that I have worked with, either as a
CEO or a board member/advisor, there was a need to move them
from a “capabilities” company, such as extrusion, or molding, or
precision machining, to a more market facing and product specific
company that supports its market-specific customers. Understand-
ing end applications of the components the company is making,
allows them to exert greater control over innovation and makes
the customers believe you are the product experts in your field. I
have been instrumental in helping that strategic evolution occur as
well as supporting more operating specific tasks such as technology
assessment, M&A and Business Development, LTA contract negoti-
ations, developing a direct sales force, globalization and site assess-
ment, becoming ISO 13485 certified, etc.
It seems that founder/owners or second/third generations transi-
tioning out of their companies, whether at closing or over time,
would greatly benefit by having your deep expertise involved in
their medical related company, particularly as part of a private
equity owned platform?
Each situation is unique, with respect to succession planning and
estate planning needs. And their exit possibilities are very varied. I
strongly recommend to founder/owners and private businesses
that they engage an advisor in some capacity well before they are
thinking of a liquidity event to better understand their options and
how best to position themselves to address those options. Many
private business owners are less familiar with private equity, and
may shortchange themselves, and their shareholders, by not fully
exploring this option. Having alignment due to equity ownership,
coupled with the accelerated pace of Private Equity involvement,
allows me to help those companies accomplish a great deal in a
short amount of time with the knowledge and experience of having
done much of this before. In addition, the opportunity to rollover
equity, the so-called “second bite of the apple” approach is often
very lucrative for founder/owners. It is a very powerful approach.
Industry Q&A: Bill Ellerkamp, Former CEO of ExtruMed
EdgePoint | 2000 Auburn Drive, Suite 330 | Beachwood, OH 44122 | (800) 217-7139 | www.edgepoint.com
HEALTHCARE Q2 - Q3 | 2017
Bill Ellerkamp President Acceleration Medtech
• Bill is a 30-year career medical device industry executive, having served on leadership teams of public and private, venture capital and private equity backed, and large, medium and small companies. Instrumental in several M&A transactions within the Medical Equipment Space.
• He has a successful track record working with and advising private equity sponsored companies and private company clients and leading organizations into profitable positions in new markets.
• Bill’s executive experience includes: board member of Cirtec Medical, a 3i Private Equity portfolio company; board member of Precision Coating, a Katahdin Industries portfolio company; board member of Bemis Associates, a privately held fourth generation family business; board member of Polyzen Inc, a privately held second generation family business; board member of AdvancedCath, an Inverness Graham Investments portfolio company, which was sold to TEConnectivity in March 2015; CEO and board member of ExtruMed, LLC, a precision medical-focused thermoplastic extrusion business; COO and board member of Ranier Technology Limited, a venture capital backed spinal implant technology company in the UK; VP, Market Development for MedSource Technologies, a leading contract engineering and manufacturing services provider to the medical device industry, which merged with UTI Corp in 2005 to form Accellent; and President of Teleflex Medical OEM.
• Bill holds a BA from Colgate University and an MBA from the London Business School.
Source: CapIQ, public trading data as of August 24, 2017
Representative EdgePoint Healthcare Transactions
EdgePoint | 2000 Auburn Drive, Suite 330 | Beachwood, OH 44122 | (800) 217-7139 | www.edgepoint.com
EdgePoint is an independent, advisory-focused,
investment banking firm serving the middle market.
Public Company Comparisons Trading Multiples
HEALTHCARE Q2 - Q3 | 2017
Source: CapIQ, public trading data as of September 30,, 2017
12.6x
10.0x10.5x 10.6x
10.2x 10.2x
11.7x
13.5x 13.5x 13.6x14.3x
4x
6x
8x
10x
12x
14x
16x
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 LTM
EV
/EB
ITD
A M
ult
iple
Healthcare Industry Public Comparables: Annual EV/EBITDA Multiples
13.1x
11.8x10.6x 10.7x
10.2x11.3x
13.4x 13.0x
11.4x12.3x 11.8x
13.3x
15.1x16.0x
15.5x16.5x16.0x 16.2x
17.0x
20.8x
6x
8x
10x
12x
14x
16x
18x
20x
22x
2014 2015 2016 LTM
EV
/EB
ITD
A M
ult
iple
Healthcare Sub-Sectory Public EV/EBITDA Multiples
Healthcare Services Home Health & Hospice Care Medical Diagnostics
Medical Equipment Healthcare Technology & Consulting
Sell-Side Advisory
Providence Home Health Care has sold to
HCF Home Health Care, Inc.
Buy-Side Advisory
Med XS Solutions has acquired
Health Quip, LLC
Sell-Side Advisory
TransMotion Medical has sold to
Winco Mfg., LLC
Financing Advisory
The Fibromyalgia & Fatigue Center
has successfully completed a capital raise
Buy-Side Advisory
Med XS Solutions has acquired
Gar Division of Neoforma
Financing Advisory
PetsDX has successfully completed a
capital raise