Scott-Macon Healthcare May 2019 Update...SCOTT-MACON Healthcare Review July 2019 2 SEGMENTS AT A GLANCE U.S. healthcare M&A activity in July 2019 continues to show signs of strength

SCOTT-MACON Healthcare ReviewJuly 2019

A D V I S O R Y S E R V I C E S D E B T/ EQ U I T Y F I N A N C I N G SVA L U AT I O N S E R V I C E SM & A A D V I S O R Y

HEALTHCARE INDUSTRYMonthly Update | July 2019

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SEGMENTS AT A GLANCE

◼ U.S. healthcare M&A activity in July 2019 continues to show signs of strength with 99 deals announced, an 10% increase from the prior year.

◼ Healthcare deal activity is likely to continue to be strong throughout 2019 given high availability of capital, potential fordisruption from horizontal industry consolidation, reimbursement pressure and rise of digitization & consumerism.

◼ Potential contributors to an M&A slowdown include the ramp-up of the 2020 U.S. presidential election / other legislative uncertainty, escalation of the U.S. / China trade tension, prolonged inversion of the yield curve and corporate debt loads athistoric levels.

– Despite several headwinds, the non-discretionary nature of healthcare spending should make the sector outperform during a potential economic slowdown.

◼ Private equity interest continues to be high with no slow down in sight as financial buyers look to put their $1+ trillion capital of dry powder to work.

◼ Please feel free to contact Nate Cortright at [email protected], or schedule a call here, should you wish to discuss how Scott-Macon can assist you in achieving your business objectives.

Nate CortrightManaging DirectorGroup Head, Healthcare

“Consistent with prior months, the number of healthcare deals in July 2019 was robust and we anticipate continued activity for the remainder of 2019. Factors such as non-traditional businesses making forays into healthcare, private equity fundraising reaching all-time highs and inorganic corporate strategic initiatives continue to drive healthcare transactions across all subsectors.”

SEGMENT SNAPSHOT

M&A Stats Jul-19 Trailing 18mo M&A Median Public Comps

$ in millions # Deals TEV TEV / Revenue TEV / EBITDA

Healthcare IT and Tech-enabled Services 15 2,855.5$ 3.83x 13.9x

Consumer Driven Healthcare 1 - 5.17x NA

Faci l i ties Management 2 - NA NA

Workforce Solutions 6 - 1.64x 11.6x

Insurance - Commercia l 1 - 0.37x 10.4x

Insurance - Government - - 0.85x 18.8x

Distribution - - 0.69x 9.6x

Labs 4 0.8 2.80x NA

Services Segment 29 2,856.4 2.67x 11.1x

Acute 3 - 0.90x 8.5x

Senior Living / Long-term Care 3 - 1.64x 16.8x

Behaviora l 6 - NA NA

Home Health 5 - 0.78x 6.1x

Specia l ty 29 40.7 1.35x 9.7x

Providers Segment 46 40.7 1.12x 8.4x

Suppl ies & Dis tribution 7 345.0 1.45x 13.1x

Durable Medica l Equipment 1 - 1.09x 7.6x

Medica l Devices & Products 1 775.0 3.68x 15.9x

Specia l ty Devices & Products 15 1,167.1 4.79x 16.0x

Consumer - - 1.94x 15.2x

Products Segment 24 2,287.1$ 3.48x 15.2x

Public Comps

TEV / Revenue TEV / EBITDA

4.21x 20.2x

2.27x 10.8x

1.55x 14.4x

1.53x 23.0x

0.97x 12.1x

0.40x 10.1x

0.40x 11.3x

2.24x 12.4x

1.53x 14.2x

1.34x 9.5x

2.11x 19.3x

1.84x 11.8x

2.37x 24.7x

1.60x 10.1x

1.68x 12.7x

0.32x 9.1x

1.76x 16.0x

5.34x 22.0x

6.10x 25.8x

0.64x 10.0x

4.44x 17.3x

mailto:[email protected]

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Note: $ in millions. Information above only represents transactions with partial or full announced deal terms.ND: SM proprietary deal stat has been included in the median.NA: Not available.NM: Not meaningful.

SERVICES Announced Enterprise Enterprise Value /

Date Target Buyer Value Revenue EBITDA

07/16/2019 OmniComm Systems, Inc. Anju Software, Inc. 77.4$ 3.14x NM

06/12/2019 Medidata Solutions, Inc. Dassault Systemes Americas Corp. 5,822.3 8.82x NM

05/21/2019 Putnam Associates, Inc. Ashfield Healthcare Communications Ltd 60.0 NA 11.1x

05/21/2019 Kyne Communications Huntsworth plc 20.5 2.01x NA

04/30/2019 Advanced Medical Personnel Services, Inc. AMN Healthcare, Inc. 220.0 1.67x 11.6x

03/27/2019 WellCare Health Plans, Inc. Centene Corporation 17,300.0 0.85x 18.8x

03/14/2019 DCP Holding Company DentaQuest, LLC 41.5 0.37x 10.4x

03/11/2019 Voalte, Inc. Hill-Rom, Inc. 195.0 4.88x NA

03/05/2019 Prescribe Wellness, LLC Tabula Rasa HealthCare, Inc. 150.0 5.17x NM

12/19/2018 Technology Business of MModal IP, LLC 3M Company 1,000.0 5.00x 10.0x

11/12/2018 athenahealth, Inc. Veritas Capital Fund Management, LLC 5,638.5 4.30x 21.3x

11/05/2018 MatrixCare, Inc. ResMed Operations, Inc. 750.0 6.15x 25.0x

08/16/2018 NuGEN Technologies, Inc. Tecan Group, Ltd. 54.5 3.78x NA

08/15/2018 GreatCall, Inc. Best Buy Co., Inc. 800.0 2.67x NA

08/13/2018 UHS Holdco, Inc. Thomas H. Lee Partners, L.P. 1,440.0 2.67x 9.9x

06/19/2018 Cotiviti Holdings, Inc. Verscend Technologies, Inc. 4,929.3 6.68x 17.1x

06/12/2018 Health Prime International, LLC GPB Capital Holdings, LLC 60.0 3.87x NA

05/28/2018 Counsyl, Inc. Myriad Genetics, Inc. 375.0 2.80x NA

04/09/2018 Phill ips, DiPisa & Associates Inc. and Leaders For Today, LLC AMN Healthcare Services, Inc. 37.0 1.61x NA

04/06/2018 MedFORCE Technologies, Inc. Ideagen, PLC 8.7 1.85x NA

03/28/2018 CMH Services Subsidiary, LLC HGS Population Health, LLC 14.0 0.23x NA

03/27/2018 Accelovance, Inc. Linical USA, Inc. 32.9 1.23x NA

03/08/2018 Express Scripts Holding Company Cigna Corporation 68,671.4 0.69x 9.6x

03/07/2018 ABILITY Network, Inc. Inovalon Holdings, Inc. 1,200.0 8.57x 16.6x

02/26/2018 Intermedix Corporation R1 RCM, Inc. 460.0 2.38x 9.6x

02/20/2018 Dohmen Life Science Services JLL Partners 537.4 NA 11.1x

02/09/2018 Genex Services, LLC Stone Point Capital, LLC 99.0 0.53x NA

Median 220.0$ 2.67x 11.1x

RECENT M&A TRANSACTIONS


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PROVIDERSAnnounced Enterprise Enterprise Value /


06/24/2019 Home Care Business in South Central U.S. Nova Leap Health Corp. 0.7$ 0.46x 3.8x

05/20/2019 Cancer Treatment Services International, Inc. Varian Medical Systems, Inc. 283.0 6.51x NA

05/16/2019 AccentCare, Inc. Advent International Corporation 909.0 1.12x NA

04/15/2019 Advanced Diagnostics Group Akumin Inc. 214.0 NA 7.1x

04/02/2019 ISDI Holdings, Inc. IMAC Management of Il l inois, LLC. 5.3 1.06x NA

04/01/2019 Alacare Home Health & Hospice Encompass Health Corporation 217.5 1.86x NA

02/07/2019 Concord Imaging Touchstone Imaging ND ND ND

01/22/2019 Hughes Center for Functional Medicine, P.A. HLYK Florida, LLC 2.0 0.66x 5.4x

12/18/2018 Civitas Solutions, Inc. Centerbridge Partners, L.P. 1,372.7 0.86x 8.4x

12/10/2018 BrightSpring Health Services PharMerica Corporation 1,320.0 0.66x NA

11/09/2018 Four Imaging Centers from Diagnostic Professionals Akumin Inc. 12.1 0.63x NA

10/10/2018 Compassionate Care Hospice Group, Inc. Amedisys Hospice, LLC 324.5 1.57x 12.0x

10/03/2018 Birner Dental Management Services, Inc. Mid-Atlantic Dental Service Holdings, LLC 38.5 0.63x NM

10/01/2018 Medical Arts Radiology RadNet, Inc. 61.6 1.54x NA

09/11/2018 Valley Healthcare Group, LLC/Northwest Medical, Inc. Great Elm Capital Group, Inc. 66.0 1.40x NA

08/20/2018 Business Assets of Comprehensive Home Care, Inc. Nova Leap Health Corp. 1.6 0.50x NA

08/15/2018 11 Imaging Centers from Rose Radiology Centers Akumin Inc. 25.0 0.91x 5.2x

08/13/2018 Living at Home SeniorCare, LLC AME, LLC 0.4 0.46x NA

07/23/2018 LifePoint Health, Inc. RCCH HealthCare Partners 5,598.1 0.90x 8.5x

07/17/2018 Giant Creative/Strategy, LLC Huntsworth, PLC 80.0 2.50x 11.4x

07/10/2018 Creative Connections, Inc. Civitas Solutions, Inc. 2.9 0.50x NA

06/11/2018 Envision Healthcare Corporation KKR & Co. L.P. 10,418.6 1.30x 9.7x

06/04/2018 Integrated Medical Delivery, LLC N. Harris Computer Corporation 6.1 1.22x NA

05/30/2018 Ernest Health, Inc. OEP Capital Advisors, L.P. 175.0 2.48x NA

04/21/2018 Sound Inpatient Physicians, Inc. Summit Partners, LLP 2,150.0 1.40x 21.2x

04/03/2018Aging Well Adult Day Health Center And Living Well Adult Day Health

CenterCivitas Solutions, Inc. 13.2 1.64x NA

03/19/2018 Business Assets of Home Health Solutions, Inc. Nova Leap Health Corp. 1.2 0.63x 3.8x

03/15/2018 Camellia Healthcare Encompass Health Corporation 135.0 1.73x NA

03/02/2018 HCR ManorCare, Inc. ProMedica Health System, Inc. 6,142.2 1.64x 16.8x

02/28/2018 Ambercare Corporation, Inc. Addus HealthCare, Inc. 40.0 0.70x NA

Median 63.8$ 1.12x 8.4x



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Announced Enterprise Enterprise Value /


07/30/2019 Hu-Friedy Mfg. Co., LLC Cantel Medical Corp. 775.0$ 3.62x 16.2x

07/11/2019 BioTek Instruments, Inc. Agilent Technologies, Inc. 1,165.0 7.19x NA

06/21/2019 Canfield Medical Supply, Inc. WesBev, LLC 0.5 0.39x 7.6x

06/12/2019 Respiratory Assets of Midwest Respiratory Care, Inc. Focus Respiratory, Inc. 6.3 1.79x NA

06/10/2019 Endocare Varian Medical Systems, Inc. 185.0 6.17x NA

06/04/2019 Vilex in Tennessee OrthoPediatrics Corp. 59.8 5.07x NA

05/02/2019 Solsys Medical, LLC Misonix, Inc. 116.7 6.83x NA

05/02/2019 Acelity, Inc. 3M Company 6,725.0 4.48x 15.2x

02/12/2019 CAS Medical Systems, Inc. Edwards Lifesciences Corporation 104.9 4.79x NM

01/28/2019 Anatomical Pathology Business of Thermo Fisher Scientific, Inc. PHC Holdings Corporation 1,140.0 3.31x NA

01/16/2019 Fuse Medical, Inc. Generex Biotechnology Corporation 34.0 1.29x NM

01/11/2019 Vista Research Group, LLC Cantel Medical Corporation 10.5 5.25x NA

12/10/2018 Nutrisystem, Inc. Tivity Health, Inc. 1,340.7 1.94x 15.2x

11/19/2018 DJO Global, Inc. Colfax Corporation 3,150.0 2.66x 16.8x

11/01/2018 Paradigm Spine, LLC RTI Surgical, Inc. 299.1 7.48x NA

09/26/2018Vascular Clot Management Business of Applied Medical Resources

CorporationLeMaitre Vascular, Inc. 14.2 4.18x NA

09/26/2018 Focal Therapeutics, Inc. Hologic, Inc. 117.9 7.37x NA

09/20/2018 AquaGuard Business of Cenorin, LLC Covalon Technologies, Ltd. 12.5 1.45x NA

09/11/2018 Invuity, Inc. Stryker Corporation 200.3 4.91x NM

08/30/2018 K2M Group Holdings, Inc. Stryker Corporation 1,340.0 4.93x NM

07/31/2018 Faxitron Bioptics, LLC Hologic, Inc. 85.0 3.15x NA

06/06/2018 Advanced Steril ization Products Services, Inc. Fortive Corporation 2,700.0 3.48x NA

06/05/2018 CoolSystems, Inc. Halyard Health, Inc. (nka:Avanos Medical, Inc.) 65.0 1.86x NA

06/04/2018 elliquence, LLC Shanghai Xianfeng Investment Management Co., Ltd 77.2 4.83x NA

05/16/2018 Abaxis, Inc. Zoetis, Inc. 1,827.8 7.47x NM

05/03/2018 CID Resources, Inc. Superior Group of Companies, Inc. 88.2 1.35x 13.1x

05/03/2018 Advanced Surgical and Orthopedic product l ines from Accellent, LLC Viant 600.0 1.50x NA

04/10/2018 Analogic Corporation Altaris Capital Partners, LLC 920.9 1.96x 20.4x

04/05/2018 General Surgery Product Assets of LeMaitre Vascular, Inc. Symmetry Surgical, Inc. 7.4 2.24x NA

04/03/2018 Paragon Medical, Inc. Precision Engineered Products, LLC 375.0 2.66x 15.6x

04/03/2018 Assets of LifeGlobal Group, LLC CooperSurgical, Inc. 125.0 5.21x NA

03/26/2018 BioMed Laboratories, LLC Scapa Group, PLC 32.0 3.14x 22.9x

03/26/2018 OraMetrix, Inc. DENTSPLY SIRONA, Inc. 150.0 7.50x NA

03/16/2018 LifeScan, Inc. Platinum Equity, LLC 2,100.0 1.40x 4.0x

03/12/2018 Cogentix Medical, Inc. LM US Parent, Inc. 210.9 3.75x NM

03/12/2018 Sarnova, Inc. Patricia Industries 903.0 1.63x NA

03/09/2018 Integrated DNA Technologies, Inc. Danaher Corporation 2,000.0 7.69x NA

03/05/2018 ABACA, Ambary, Tarmac Manufacturing and Tower Management CGX Life Sciences, Inc. 21.3 1.42x 6.1x

02/02/2018 Dielectrics, Inc. UFP Technologies, Inc. 57.2 1.33x NA

Median 150.0$ 3.48x 15.2x


PRODUCTS


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NM: Not meaningful.(1) Represents company that has announced potential acquisition that is subject to shareholder approval, regulatory approval and/or other customary

closing conditions.

SERVICES Stock Price as 52-Week Market Enterprise LTM EBITDA EV/LTM

$ in millions, except per share data of 7/31/19 % Change Cap Value (EV) Revenue Margins Revenue EBITDA

Healthcare IT and Tech-enabled Services

Allscripts Healthcare Solutions, Inc. $ 10.30 (15.8%) $ 1,714 $ 2,538 $ 1,751 6.6% 1.45x 21.8x

Cerner Corporation 71.65 15.4% 22,813 23,290 5,527 21.8% 4.21x 19.4x

Computer Programs and Systems, Inc. 25.81 (17.3%) 355 485 277 12.1% 1.75x 14.5x

Evolent Health, Inc. 6.82 (66.2%) 559 767 733 (6.5%) 1.05x NM

HMS Holdings Corp. 34.90 45.8% 3,040 3,035 626 24.6% 4.85x 19.7x

Inovalon Holdings, Inc. 15.00 40.8% 2,313 3,237 585 27.5% 5.54x 20.2x

Model N, Inc. 21.86 17.2% 710 701 141 (4.4%) 4.96x NM

NextGen Healthcare, Inc. 16.36 (18.7%) 1,070 1,101 528 7.2% 2.09x 28.8x

National Research Corporation 67.42 77.7% 1,677 1,713 124 36.6% 13.87x 37.9x

Omnicell, Inc. 75.21 26.4% 3,100 3,155 836 12.9% 3.77x 29.3x

R1 RCM Inc. 12.58 56.9% 1,390 1,790 1,084 8.7% 1.65x 19.0x

Tabula Rasa HealthCare, Inc. 60.27 3.5% 1,233 1,427 249 5.6% 5.73x NM

Vocera Communications, Inc. 25.67 (14.9%) 799 876 177 (3.2%) 4.95x NM

Mean 11.6% 3,136$ 3,393$ 972$ 11.5% 4.30x 23.4x

Median 15.4% 1,390$ 1,713$ 585$ 8.7% 4.21x 20.2x

Consumer Driven Healthcare

Castlight Health, Inc. $ 1.61 (51.2%) $ 234 $ 206 $ 154 (17.3%) 1.34x NM

HealthEquity, Inc. 81.98 8.6% 5,779 5,489 304 33.9% NM NM

Teladoc Health, Inc. 68.24 14.0% 4,916 4,935 493 (6.2%) 10.02x NM

Tivity Health, Inc. 17.45 (48.2%) 832 1,946 859 21.0% 2.27x 10.8x

Mean (19.2%) 2,940$ 3,144$ 452$ 7.9% 4.54x 10.8x

Median (19.8%) 2,874$ 3,440$ 398$ 7.4% 2.27x 10.8x

Facilities Management

Healthcare Services Group, Inc. $ 23.91 (40.6%) $ 1,772 $ 1,805 $ 1,945 5.7% 0.93x 16.2x

Stericycle, Inc. 45.96 (34.2%) 4,184 7,373 3,384 17.4% 2.18x 12.5x

Mean (37.4%) 2,978$ 4,589$ 2,664$ 11.5% 1.55x 14.4x

Median (37.4%) 2,978$ 4,589$ 2,664$ 11.5% 1.55x 14.4x

Workforce Solutions

AMN Healthcare Services, Inc. $ 53.38 (11.8%) $ 2,489 $ 3,244 $ 2,123 11.2% 1.53x 13.6x

Cross Country Healthcare, Inc. 9.49 (19.1%) 349 422 800 2.3% 0.53x 23.0x

HealthStream, Inc. 28.24 0.6% 914 827 249 12.6% 3.33x 26.5x

Mean (10.1%) 1,251$ 1,498$ 1,057$ 8.7% 1.79x 21.0x

Median (11.8%) 914$ 827$ 800$ 11.2% 1.53x 23.0x

Insurance - Commercial

Anthem, Inc. $ 294.61 16.4% $ 75,366 $ 91,847 $ 96,742 6.7% 0.95x 14.2x

Cigna Corporation 169.92 (5.3%) 64,477 100,737 102,510 8.7% 0.98x 11.3x

Humana Inc. 296.75 (5.5%) 40,072 41,669 60,726 6.1% 0.69x 11.3x

UnitedHealth Group Incorporated 249.01 (1.7%) 236,645 265,173 235,876 8.7% 1.12x 12.9x

Mean 1.0% 104,140$ 124,857$ 123,964$ 7.5% 0.94x 12.4x

Median (3.5%) 69,922$ 96,292$ 99,626$ 7.7% 0.97x 12.1x

Insurance - Government

Centene Corporation $ 52.09 (20.1%) $ 21,545 $ 22,572 $ 65,491 4.8% 0.34x 7.2x

Molina Healthcare, Inc. 132.78 27.6% 8,315 7,692 17,054 6.9% 0.45x 6.5x

WellCare Health Plans, Inc. 287.25 7.4% 14,452 13,804 24,901 4.2% 0.55x 13.1x

Magellan Health, Inc. 70.34 (3.3%) 1,716 2,356 7,226 1.9% 0.33x 17.4x

Mean 2.9% 11,507$ 11,606$ 28,668$ 4.5% 0.42x 11.0x

Median 2.1% 11,383$ 10,748$ 20,978$ 4.5% 0.40x 10.1x

Distribution

CVS Health Corporation $ 55.87 (13.9%) $ 72,580 $ 158,440 $ 226,053 6.6% 0.70x 10.7x

Diplomat Pharmacy, Inc. 5.27 (74.6%) 398 1,000 5,278 1.6% 0.19x 12.0x

Rite Aid Corporation 6.97 (82.7%) 375 7,043 21,624 2.2% 0.33x 14.7x

Walgreens Boots Alliance, Inc. 54.49 (19.4%) 49,212 65,983 136,354 5.3% 0.48x 9.1x

Mean (47.6%) 30,641$ 58,116$ 97,327$ 3.9% 0.42x 11.6x

Median (47.0%) 24,805$ 36,513$ 78,989$ 3.8% 0.40x 11.3x

Labs

Laboratory Corporation of America Holdings $ 167.52 (4.5%) $ 16,501 $ 23,742 $ 11,292 16.8% 2.10x 12.5x

Quest Diagnostics Incorporated 102.08 (5.2%) 13,747 18,046 7,572 19.6% 2.38x 12.2x

Mean (4.8%) 15,124$ 20,894$ 9,432$ 18.2% 2.24x 12.4x

Median (4.8%) 15,124$ 20,894$ 9,432$ 18.2% 2.24x 12.4x

Median (5.3%) 2,401$ 3,196$ 1,848$ 6.8% 1.53x 14.2x

(1)

PUBLIC COMPANY PERFORMANCE


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closing conditions.

PROVIDERSStock Price as 52-Week Market Enterprise LTM EBITDA EV/LTM


Acute

Community Health Systems, Inc. $ 2.05 (38.6%) $ 233 $ 14,240 $ 13,583 9.8% 1.05x 10.7x

HCA Healthcare, Inc. 133.51 7.5% 45,701 81,263 48,844 19.3% 1.66x 8.6x

Tenet Healthcare Corporation 23.57 (37.4%) 2,431 18,126 18,213 15.1% 1.00x 6.6x

Universal Health Services, Inc. 150.86 23.6% 13,598 18,018 11,063 15.6% 1.63x 10.4x

Mean (11.2%) 15,491$ 32,912$ 22,926$ 14.9% 1.33x 9.1x

Median (14.9%) 8,014$ 18,072$ 15,898$ 15.3% 1.34x 9.5x

Senior Living / Long-term Care

Brookdale Senior Living Inc. $ 7.79 (18.8%) $ 1,450 $ 7,157 $ 3,326 13.7% 2.15x 15.7x

Capital Senior Living Corporation 5.34 (46.5%) 162 1,393 455 12.3% 3.06x 24.8x

Ensign Group, Inc. 60.26 67.1% 3,225 4,512 2,177 9.3% 2.07x 22.3x

National HealthCare Corporation 87.60 21.5% 1,341 1,602 989 10.0% 1.62x 16.3x

Mean 5.8% 1,544$ 3,666$ 1,737$ 11.3% 2.23x 19.8x

Median 1.4% 1,396$ 3,057$ 1,583$ 11.1% 2.11x 19.3x

Behavioral

AAC Holdings, Inc. $ 0.98 (90.5%) $ 25 $ 409 $ 270 (10.9%) 1.52x NM

Acadia Healthcare Company, Inc. 31.94 (19.1%) 2,827 6,599 3,054 18.3% 2.16x 11.8x

Mean (54.8%) 1,426$ 3,504$ 1,662$ 3.7% 1.84x 11.8x

Median (54.8%) 1,426$ 3,504$ 1,662$ 3.7% 1.84x 11.8x

Home Health

Addus HomeCare Corporation $ 80.59 21.8% $ 1,050 $ 1,051 $ 566 7.3% 1.86x 25.3x

Amedisys, Inc. 137.89 47.3% 4,430 4,774 1,812 9.9% 2.63x 26.5x

Chemed Corporation 405.39 28.3% 6,455 6,638 1,837 15.0% 3.61x 24.0x

LHC Group, Inc. 126.58 47.0% 3,986 4,276 2,037 10.0% 2.10x 21.0x

Mean 36.1% 3,980$ 4,185$ 1,563$ 10.6% 2.55x 24.2x

Median 37.7% 4,208$ 4,525$ 1,825$ 10.0% 2.37x 24.7x

Specialty

American Renal Associates Holdings, Inc. $ 7.70 (52.1%) $ 250 $ 742 $ 817 21.3% 0.91x 4.3x

DaVita Inc. 59.85 (14.8%) 9,591 18,047 11,253 18.7% 1.60x 8.6x

MEDNAX, Inc. 24.57 (42.6%) 2,094 4,245 3,649 14.4% 1.16x 8.1x

Providence Service Corporation 55.74 (20.5%) 719 710 1,436 3.6% 0.49x 13.6x

RadNet, Inc. 14.73 9.9% 738 1,898 1,060 12.0% 1.79x 14.9x

Select Medical Holdings Corporation 16.74 (19.5%) 2,267 6,545 5,218 12.2% 1.25x 10.3x

Surgery Partners, Inc. 7.63 (49.5%) 377 3,004 1,786 19.1% 1.68x 8.8x

U.S. Physical Therapy, Inc. 129.08 23.2% 1,647 1,759 468 16.1% 3.76x 23.3x

Mean (20.2%) 2,666$ 5,121$ 3,346$ 15.3% 1.64x 11.3x

Median (19.5%) 1,647$ 3,004$ 1,786$ 16.1% 1.60x 10.1x

Median (15.6%) 2,094$ 4,512$ 2,037$ 13.7% 1.68x 12.7x



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closing conditions.

PRODUCTSStock Price as 52-Week Market Enterprise LTM EBITDA EV/LTM


Supplies & Distribution

AmerisourceBergen Corporation $ 87.15 6.5% $ 18,317 $ 19,823 $ 177,248 1.3% 0.11x 8.7x

Cardinal Health, Inc. 45.73 (8.4%) 13,630 19,272 143,530 1.9% 0.13x 6.9x

Henry Schein, Inc. 66.54 (16.2%) 9,919 11,306 13,421 8.5% 0.84x 9.9x

McKesson Corporation 138.95 10.6% 25,897 33,889 217,440 1.9% 0.16x 8.0x

Owens & Minor, Inc. 2.71 (85.6%) 171 1,988 9,953 2.1% 0.20x 9.6x

Patterson Companies, Inc. 19.80 (19.2%) 1,851 2,508 5,575 4.6% 0.45x 9.8x

Premier, Inc. 38.75 3.6% 2,447 2,467 1,680 32.9% 1.47x 4.5x

West Pharmaceutical Services, Inc. 137.27 25.2% 10,123 10,069 1,767 21.4% 5.70x 26.6x

Mean (10.5%) 10,294$ 12,665$ 71,327$ 9.3% 1.13x 10.5x

Median (2.4%) 10,021$ 10,688$ 11,687$ 3.3% 0.32x 9.1x

Durable Medical Equipment

Hill-Rom Holdings, Inc. $ 106.64 13.2% $ 7,121 $ 8,992 $ 2,884 19.5% 3.12x 16.0x

Invacare Corporation 5.35 (70.0%) 181 375 948 0.6% 0.40x NM

Mean (28.4%) 3,651$ 4,684$ 1,916$ 10.1% 1.76x 16.0x

Median (28.4%) 3,651$ 4,684$ 1,916$ 10.1% 1.76x 16.0x

Medical Devices & Products

Abbott Laboratories $ 87.10 32.9% $ 153,940 $ 170,870 $ 30,935 24.3% 5.52x 22.7x

Baxter International Inc. 83.97 15.9% 42,871 45,732 11,080 23.6% 4.13x 17.5x

Boston Scientific Corporation 42.46 26.3% 59,146 68,824 10,077 26.7% 6.83x 25.6x

Cantel Medical Corp. 92.28 (0.5%) 3,852 4,034 908 17.4% 4.44x 25.5x

Hologic, Inc. 51.25 19.4% 13,738 16,385 3,315 31.0% 4.94x 15.9x

Johnson & Johnson 130.22 (1.7%) 343,672 359,726 81,325 34.4% 4.42x 12.8x

Medtronic plc 101.94 13.0% 136,718 157,649 30,557 30.2% 5.16x 17.1x

Mettler-Toledo International Inc. 756.75 27.7% 18,770 19,876 2,964 25.5% 6.71x 26.3x

Stryker Corporation 209.78 28.5% 78,270 85,386 14,204 28.2% 6.01x 21.3x

Teleflex Incorporated 339.74 24.6% 15,680 17,631 2,517 27.1% 7.00x 25.9x

Mean 18.6% 86,666$ 94,611$ 18,788$ 26.9% 5.52x 21.1x

Median 22.0% 51,009$ 57,278$ 10,579$ 26.9% 5.34x 22.0x

Specialty Devices & Products

Abiomed, Inc. $ 278.56 (21.4%) $ 12,614 $ 12,527 $ 797 31.9% NM NM

AngioDynamics, Inc. 20.38 (3.6%) 760 664 271 9.2% 2.45x 26.7x

AtriCure, Inc. 32.08 12.0% 1,244 1,273 216 (8.2%) 5.90x NM

BioTelemetry, Inc. 46.95 (10.6%) 1,591 1,759 398 27.9% 4.41x 15.8x

Cardiovascular Systems, Inc. 45.83 20.8% 1,596 1,502 239 2.2% 6.29x NM

CONMED Corporation 87.35 18.0% 2,466 3,270 901 16.8% 3.63x 21.5x

DexCom, Inc. 156.87 64.9% 14,304 14,696 1,222 (9.9%) 12.03x NM

Edwards Lifesciences Corporation 212.85 49.4% 44,266 44,208 3,964 30.7% 11.15x 36.3x

Glaukos Corporation 81.68 96.3% 2,973 3,013 211 (3.0%) 14.31x NM

Globus Medical, Inc. 45.58 (11.5%) 4,512 4,396 743 29.1% 5.92x 20.3x

Inogen, Inc. 61.50 (69.1%) 1,349 1,141 373 11.7% 3.06x 26.2x

Intuitive Surgical, Inc. 519.51 2.2% 59,875 59,160 4,040 34.8% 14.64x 42.0x

LeMaitre Vascular, Inc. 33.09 (8.1%) 651 645 111 23.0% 5.83x 25.4x

Masimo Corporation 157.85 58.8% 8,422 8,034 895 25.8% 8.98x 34.8x

Utah Medical Products, Inc. 90.99 (6.2%) 339 306 43 51.3% 7.17x 14.0x

Mean 12.8% 10,464$ 10,440$ 962$ 18.2% 7.55x 26.3x

Median 2.2% 2,466$ 3,013$ 398$ 23.0% 6.10x 25.8x

Consumer

GNC Holdings, Inc. $ 2.08 (34.6%) $ 176 $ 1,431 $ 2,227 9.1% 0.64x 7.0x

Prestige Consumer Healthcare Inc. 34.60 (3.2%) 1,772 3,540 954 34.6% 3.71x 10.7x

Vitamin Shoppe, Inc. 4.42 (47.1%) 104 627 1,079 5.8% 0.58x 10.0x

Mean (28.3%) 684$ 1,866$ 1,420$ 16.5% 1.64x 9.3x

Median (34.6%) 176$ 1,431$ 1,079$ 9.1% 0.64x 10.0x

Median 5.1% 7,771$ 8,513$ 1,997$ 22.2% 4.44x 17.3x


SCOTT-MACON Healthcare ReviewJuly 2019VENTURE INVESTMENT TRENDS

9Note: Funding represents capital raised over the last twelve months for deals where the identified VC firm participated.

Keiretsu Forumwww.keiretsuforum.com

23 $37M 2000HC DEALS FUNDING FOUNDED

187855-48 167818-78 155733-40Curvafix PainQx Stream Dx

Ben Franklin Technology Partners of Southeastern Pennsylvaniawww.sep.benfranklin.org


107518-96 119615-77 224073-37Oncora Medical Lia (Diagnostic Equipment)Repisodic

StartUp Healthwww.startuphealth.com


135690-94 221532-13 268207-84iShare Medical Devoted Health Beam Health group

Connecticut Innovationswww.ctinnovations.com


233670-70 264474-46 61120-63Vistara BiosciencesCytoveris Avitus Orthopaedics

40380-31

11138-68

54331-57

11174-14

1

2

3

4

Seed Early Stage Later Stage

$8M N/A 2016RAISED VALUATION FOUNDED

Tivic Health tivichealth.com


Ariel Precision Medicinearielmedicine.com


Revive Solutionsrevive.life

$4M $10M 2016RAISED VALUATION FOUNDED

metameconnect.comMetaMe Health

Of f ers online plat f orm designed t o provide non-drug t reat ment f or

pat ient s suf f er ing f rom Gast roint est inal disorders

180775-45

156111-85

233855-02

167936-77

Developer o f bioelectronic therapeutic device

designed to reduce sinus congestion

Offers decision support too ls for clinicians treating

patients with chronic diseases

Developer of cardiac medical device intended to increase the

survival rate from Sudden Cardiac Arrest

1

2

3

4


AgaMatrix AgaMatrix agamatrix.com


Nurx nurx.com


Procyrion procyrion.com


alto.com Alto Pharmacy

156879-10

Digital pharmacy platform designed to bring a

transparent and effortless pharmacy experience

40641-76

Offers Innovative, patient centric products and apps

for diabetes management

120154-96

Offers delivery of birth control, STI tests & related products

for women enabled by telehealth for prescribing

62118-82

Developing catheter-based circulatory support

devices to address unmet needs of CHF patients

1

2

3

4


Beta Bionics betabionics.com


Notable Labs notablelabs.com


BioIntellisense biointellisense.com


parsleyhealth.comParsley Health0

160962-49

Offer subscription-based personalized healthcare

services (concierge medical care)

163980-82

Developer o f an integrated bionic pancreas device

designed to monitor glucose metabolisms

109853-56

Drug test ing services intended to help oncologists ident ify

act ionable treatment opt ions for people with blood cancers

277392-79

Developer of a breakt hrough dat a service f or cont inuous healt h

monit or ing, predict ive analyt ics and algorit hmic clinical insight s

1

2

3

4

Keiretsu Forumwww.keiretsuforum.com


66137-14 62043-67 57367-72Attune Medical OtoNexus Medical TechnologiesZSX Medical

F-Prime Capital Partnerswww.fprimecapital.com


91356-22 58493-26 136458-82Farapulse TraceLink Good Methods Global

Norwest Venture Partnerswww.nvp.com


53766-37 53015-59 85973-68ClearDATA Impel NeuroPharmaVisitPay

SV Health Investorswww.svhealthinvestors.com


51636-97 107171-56 52730-65CardioFocus Evidation HealthValenTx

40380-31

124929-64

11258-83

11288-17

1

2

3

4

Jumpstart Foundry www.jsf.co


169669-90 267588-10 267580-00Kegelbell Vision Care ConnectScribeLink

Joyance Partnerswww.joyancepartners.com


232807-15 178703-56 230714-65Irisvision WeRecover Epicore Biosystems

Alumni Ventures Groupwww.avgfunds.com


159349-51 128094-58 229812-76Sana Health Mahmee MDMetrix

SOSV www.sosv.com


231446-44 159349-51 223050-43Chronus Health Sana Health Bisu

54677-62

224091-55

60082-66

51322-24

1

2

3

4

TOP INVESTORS (TTM)

TOP DEALS (JUL-19)

TOP INVESTORS (TTM)

TOP DEALS (JUL-19)

TOP INVESTORS (TTM)

TOP DEALS (JUL-19)

SCOTT-MACON Healthcare ReviewJuly 2019ABOUT SCOTT-MACON

10

Disclaimer:In the preparation of the information contained in this document, Scott-Macon, Ltd. has endeavored to present information that is as accurate and current as possible from sources believed to be reliable. However, inadvertent errors can occur. Therefore, the information is provided “as is”, without any representation or warranty of any kind, expressed or implied. Any reproduction, retransmission, republication, or other use of all or part of this document is expressly prohibited, unless written permission has been granted by Scott-Macon, Ltd. All other rights are reserved.

Copyright 2019 © Scott-Macon, Ltd., all rights reserved.

Scott-Macon is one of the oldest independent investment banks in the United States focused exclusivelyon middle-market transactions. Founded in 1973 by Alfred L. Scott, the firm’s senior professionals haveextensive experience in mergers and acquisitions advisory, debt and equity financing, corporatevaluations, fairness opinions and general corporate financial consulting.

In business for over 40 years, Scott-Macon has been retained to undertake a diverse range of domesticand international corporate finance engagements for both public and privately-held corporations. Thefirm’s professionals have significant operating and advisory experience across key industry sectors.

HEALTHCARE INDUSTRY EXPERIENCE

1. Pitchbook

2. S&P CapitalIQ

3. Scott-Macon proprietary transaction information

INDUSTRY GROUPS

Healthcare Financial Institutions

Consumer ProductsIndustrial & Automotive

Media / InformationChemicals

Transportation / LogisticsAerospace / Defense

Services Segment

Revenue Cycle Management

Facility Management

Tech-enabled

Data Analytics

Insurance

Medical Review

Consulting

Regulatory Compliance

Providers Segment

Non-acute Care

Home Health & Hospice

Laboratories

Acute Care

Long-Term Care

Behavioral Health

Specialty Care

Alternative / Integrative Health

Products Segment

Disposables

Commercial

Consumer

Clinical Devices

Distribution

Non-Clinical Devices

Diagnostic

Durable Medical Equipment

Nathan D. CortrightManaging DirectorGroup Head, [email protected](203) 246-6527

Alfred L. ScottPresident & [email protected](212) 755-8200

Robert B. DimmittSenior Managing [email protected](212) 755-8200

Alex L. ScottManaging [email protected](212) 755-8200

Jeffrey M. TepperManaging Director [email protected](212) 755-8200

Joshua H. KeattsVice [email protected](646) 572-2440

Spencer R. BergVice [email protected](646) 572-2420

George B. JamesSenior [email protected](646) 572-2461

CONTACTS

Sources










11Note: These include companies where Principals of Scott-Macon were active advisors while employed at Scott-Macon and previous firms.All logos listed above are registered trademarks of the respective companies.

SELECT HEALTHCARE TRANSACTIONS

has been recapitalized by

has acquired

National Capital Health

has been acquired by


Affiliated

Healthcare


Kimberly

Quality Care

has entered into a debt facility with


has sold its securement division to

has acquired

Cobe Laboratories



has acquired

Friendly Hills Health System


has been acquired by a joint venture between

Pioneer HealthCare




a portfolio company of



®

Advanced Technologies Group, Inc.


has sold its laboratory services business to


has acquired


CareScount®


Grant

Hospital

has sold its patient monitoring division to

has received an equity investment from


St. VincentManaged Care


Medical

Resource

has acquired

Longview Associates

Documents

Scott-Macon Healthcare May 2019 Update...SCOTT-MACON Healthcare Review July 2019 2 SEGMENTS AT A GLANCE U.S. healthcare M&A activity in July 2019 continues to show signs of strength