Sectorwatch:Healthcare & Life Sciences Management ConsultingQ4 2019
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Healthcare & Life Sciences Management ConsultingQ4 2019 Sector Dashboard [4]
Public Basket Performance [5]
Operational Metrics [7]
Valuation Comparison [10]
Recent Deals [12]
7 Mile Advisors appreciates the opportunity to present this confidential information to the Company. This document is meant to be delivered only inconjunction with a verbal presentation, and is not authorized for distribution. Please see the Confidentiality Notice & Disclaimer at the end of the document. Alldata cited in this document was believed to be accurate at the time of authorship and came from publicly available sources. Neither 7 Mile Advisors nor 7MSecurities make warranties or representations as to the accuracy or completeness of third-party data contained herein. This document should be treated asconfidential and for the use of the intended recipient only. Please notify 7 Mile Advisors if it was distributed in error.
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Overview
7MA provides Investment Banking & Advisory Services to the Business Services and Technology Industries globally. We advise on M&A and private capital transactions, and provide market assessments and benchmarking. As a close knit team with a long history together and a laser focus on our target markets, we help our clients sell their companies, raise capital, grow through acquisitions, and evaluate new markets. We publish our sectorwatch, a review of M&A and operational trends in the industries we focus.
Dashboard• Summary metrics on the sector• Commentary on market momentum by
comparing the most recent 12-month performance against the last 3-year averages.
Public Basket Performance• Summary valuation and operating metrics
for a basket of comparable public companies
Valuation Comparison• Graphical, detailed comparison of valuation
multiples for the public basket
Recent Deals• The most recently announced deals in the
sector
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Dashboard
Operating Metrics
Valuation
Revenue Growth Momentum
4.1%One year revenue growth percentage compared to
revenue growth average percentage for last 3
years.
Pricing / Gross Margin Momentum
1.2% One year gross profit percentage compared to
gross profit percentage average for last 3 years.
Profitability
-1.5% One year EBITDA percentage compared to EBITDA
percentage average for last 3 years.
Current revenue growth rate exceeds the average of the last 3 years by
this amount, indicating that market momentum is increasing.
Current gross profit margin slightly exceeds the average of the last 3
years gross profit margin by this amount so companies are maintining
margins.
Current EBITDA margin is a bit less than the average of the last 3 years,
consistent with the contraction in gross margin.
9.2%
10.3%
35.4%
0% 10% 20% 30% 40%
Median LTM Revenue Growth %
Median LTM EBITDA Margin %
Median LTM Gross Profit Margin
%
1.5x
13.1x
17.9x
18.0x
0x 5x 10x 15x 20x
Median TEV / LTM Revenue
Median TEV / LTM EBITDA
Median Price / LTM Earnings
Median TEV / LTM EBIT
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Public Basket
Company TEV $mLTM Rev
$m
Rev Growth
YoY GP %EBITDA
%TEV / Rev X
TEV / EBITDA
X # FTEsRev / FTE $k
Accenture plc 110,953 43,215 9% 31% 17% 2.6 15.4 492,000 88
FTI Consulting, Inc. 4,172 2,255 13% 35% 15% 1.8 12.5 4,768 473
Allscripts Healthcare Solutions, Inc. 2,649 1,751 14% 48% 7% 1.5 22.8 9,500 184
Huron Consulting Group Inc. 1,668 829 10% 35% 12% 2.0 16.3 3,269 254
Cegedim SA 685 553 5% 45% 10% 1.3 11.8 4,374 126
CRA International, Inc. 493 429 9% 30% 9% 1.2 13.1 687 625
Cello Health plc 183 213 -1% 64% 8% 0.8 10.5 973 219
Average 17,258 7,035 9% 41% 11% 1.6 14.6 73,653 281
Median 1,668 829 9% 35% 10% 1.5 13.1 4,374 219
share price as of 26Oct19
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Public Basket Valuation Trends
Public EBITDA Multiples over Time
Public Revenue Multiples over Time
0.0x
0.4x
0.8x
1.2x
1.6x
2.0x
TEV/Revenue - Median TEV/Revenue - Average
0x
4x
8x
12x
16x
TEV/EBITDA - Median TEV/EBITDA - Average
11.8x
1.4x
0x
2x
4x
6x
8x
10x
12x
14x
16x
TEV/EBITDA - Median TEV/Revenue - Median
TEV/EBITDA - Average TEV/Revenue - Average
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Operational Metrics
LTM Revenue Growth %LTM Revenue per
Full Time Employee x 000’s
$- $200 $400 $600 $800
Median
Accenture plc
Cegedim SA
Allscripts Healthcare
Solutions, Inc.
Cello Health plc
Huron Consulting Group
Inc.
FTI Consulting, Inc.
CRA International, Inc.
-10% 0% 10% 20%
Median
Cello Health plc
Cegedim SA
CRA International, Inc.
Accenture plc
Huron Consulting Group
Inc.
FTI Consulting, Inc.
Allscripts Healthcare
Solutions, Inc.
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Operational Metrics
LTM Gross Profit Margin % LTM EBITDA %
0% 5% 10% 15% 20%
Median
Allscripts
Healthcare
Solutions, Inc.
Cello Health plc
CRA International,
Inc.
Cegedim SA
Huron Consulting
Group Inc.
FTI Consulting, Inc.
Accenture plc
0% 20% 40% 60% 80%
Median
CRA International, Inc.
Accenture plc
Huron Consulting Group
Inc.
FTI Consulting, Inc.
Cegedim SA
Allscripts Healthcare
Solutions, Inc.
Cello Health plc
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Valuation
TEV / LTM Revenue TEV / LTM EBITDA
0x 1x 2x 3x
Median
Cello Health plc
CRA International,
Inc.
Cegedim SA
Allscripts
Healthcare
Solutions, Inc.
FTI Consulting,
Inc.
Huron Consulting
Group Inc.
Accenture plc
0x 4x 8x 12x 16x 20x 24x
Median
Cello Health plc
Cegedim SA
FTI Consulting, Inc.
CRA International, Inc.
Accenture plc
Huron Consulting Group
Inc.
Allscripts Healthcare
Solutions, Inc.
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Valuation
Price / LTM Earnings Historical Valuation Multiples versus Revenue Growth Rate
0x 10x 20x 30x 40x 50x 60x
Median
CRA International, Inc.
Cello Health plc
FTI Consulting, Inc.
Accenture plc
Huron Consulting Group
Inc.
10x 12x 12x 13x 15x 16x 23x-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
0x
5x
10x
15x
20x
25x
LT
M R
GR
%
EB
IT
DA
(x)
EBITDA(x) LTM RGR%
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In the last twelve months there were transactions totaling $5.7btransactions in the healthcare and life sciences managementconsulting sector. 7 Mile Advisors tracked 123 transactionsin the sector, including 66 M&A transactions.
RECENT TRANSACTIONS SUMMARY
All Transactions by RegionAll Transactions by Type
Merger & Acquisition Statistics
Valuation Summary
Total Deal Value($mm): $5,686.21
Average Deal Value: $334.48
Average TEV/Revenue: 3.73x
Average TEV/EBITDA: 16.67x
Average Day Prior Premium(%): 31.35%
Average Week Prior Premium(%): 33.32%
Average Month Prior Premium(%): 33.18%
Most Active Buyers/Investors by Number of Transactions Most Active Buyers/Investors by Total Transaction Size
Company NameNumber Of
TransactionsCompany Name
Transaction Size ($mm)
Da Vinci Capital Management Ltd. 2 DXC Technology Company (NYSE:DXC) 2,072.15
IQVIA Holdings Inc. (NYSE:IQV) 2 Guidehouse LLP 1,234.01
Xinxing Jihua Pharmaceutical Holdings Co., Ltd. 2 Industrial Scientific Corporation 570.0
22C Capital LLC 1 Kinnevik AB (OM:KINV B) 550.0
Advent International Corporation 1 Public Investment Fund 550.0
Aier Eye Hospital Group Co., Ltd. (SZSE:300015) 1 Vostok New Ventures Ltd (OM:VNV SDB) 550.0
Alper Consultoria e Corretora de Seguros S.A. (BOVESPA:APER3) 1 Munich Re/HSB Ventures 550.0
Apervita, Inc. 1 EQT Partners AB 531.07
Artis Capital Management, L.P. 1 Intermountain Healthcare, Inc. 450.0
Ashfield Healthcare Communications Ltd 1 Xinxing Jihua Pharmaceutical Holdings Co., Ltd. 296.47
Private
Placement47%Merger/Ac
quisition53%
Europe
11%
Asia /
Pacific23%
Africa / Middle
East1%
United States
and Canada64%
Latin America and
Caribbean1%
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Recent TransactionsDate Target Buyer / Investor
Total Transaction
Value Target
Revenue TEV /
Revenue TEV /
EBITDA
23Oct19 Avia Health Innovation Sumitomo Corporation of Americas; First Trust Capital Partners LLC; B.C. Ziegler and Company, Investment Arm
22.00 - - -
13Oct19 Remedy Chicago Inc. The Motion Agency - - - -
11Oct19 Lynx Product Group, LLC Chalmers Group - - - -
11Oct19 Q BioMed Inc. Yorkville Advisors Global LP; YA II PN, LTD. 0.75 - - -
1Oct19 Arcus Global Media, LLC W2O Group - - - -
9Oct19 Rapid Dose Therapeutics Corp. - - 0.01 - -
9Oct19 Hamilton & Co. Schjodt - - - -
3Oct19 salesforce.com, inc. - 124.77 14,729.00 - -
2Oct19 Definitive Healthcare, LLC 22C Capital LLC - - - -
2Oct19 Brio Bliss Life Sciences Pvt. Ltd./Nutri Synapzz Therapeutix Pvt. Ltd.
Shield Healthcare Pvt. Ltd. - - - -
2Oct19 Orikami B.V. Healthy Capital Management B.V. 0.66 - - -
1Oct19 Silicus Technologies, LLC Infogain Corporation - - - -
30Sep19 ECG Management Consultants, Inc. Siemens Medical Solutions USA, Inc. - 100.00 - -
30Sep19 Aptus Health, Inc. WebMD Health Corp. - - - -
30Sep19 CBIZ, Inc. P2 Capital Partners, LLC - - - -
26Sep19 eMids Technologies Inc. New Mountain Capital, L.L.C - - - -
26Sep19 AMN Healthcare, Inc. - 300.00 - - -
24Sep19 Thermo Fisher Scientific Inc. - 982.71 24,868.00 - -
19Sep19 Shanghai Fosun Pharmaceutical (Group) Co., Ltd. Shanghai Fosun High Technology (Group) Co., Ltd. 3.20 3,837.88 - -
12Sep19 Waters Corporation - 500.00 2,406.06 - -
10Sep19 PerkinElmer, Inc. - 847.20 2,801.92 - -
9Sep19 Healthway Medical Corporation Limited - - 80.29 - -
5Sep19 Inventure LLC - - - - -
3Sep19 Box, Inc. Starboard Value LP - - - -
29Aug19 LEOCLAN Co.,Ltd. - 10.60 - - -
28Aug19 ThoughtSpot, Inc. Silver Lake; Sapphire Ventures LLC; Lightspeed Venture Partners; Silver Lake Waterman; Geodesic Capital
248.00 - - -
28Aug19 Computer Task Group, Incorporated Wax Asset Management, LLC - - - -
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7MA provides Investment Banking & Advisory Services to the Business Services and Technology Industries globally. We advise on M&A and
private capital transactions and provide market assessments and benchmarking. As a close-knit team with a long history together and a laser
focus on our target markets, we help our clients sell their companies, raise capital, grow through acquisitions, and evaluate new markets.
Securities offered through 7M Securities LLC.
Leroy Davis, Partner 704.899.5962 [email protected]
Tripp Davis, Partner 704.899.5762 [email protected]
Andy Johnston, Partner 704.899.5961 [email protected]
Ben Lunka, Managing Director 704.496.2995 [email protected]
Jeff Stoecklein, Managing Director 312.796.9330 [email protected]
Mark Landry, Managing Director 561.972.0609 [email protected]
Kristina Sergueeva, Director 704.899.5149 [email protected]
Neil Churman, Director 281.742.9340 [email protected]
John Cooper, Director 704.973.3996 [email protected]
Tim Frye, Director 704.973.3994 [email protected]
Ben Garber, Vice President 412.626.7898 [email protected]
Nicholas Prendergast, Financial Analyst 704.973.3995 [email protected]
Ariail Siggins, Marketing Director 704.981.2908 [email protected]
Emily Halstenberg, Marketing & Sales Coordinator 704.409.9912 [email protected]
Sydney Larese, Associate 704.973.3998 [email protected]
Marty Johnson, Associate 704.973.3999 [email protected]
Rory Julyan, Associate 704.981.2520 [email protected]
Garth Martin, Associate 704.973.3997 [email protected]
Dennis Fox, Associate 704.706.9168 [email protected]
Steve Buffington, Associate 704.960.1828 [email protected]
CONTACT INFO