Fairness opinions › Bankers
Credit Suisse: healthcare fairness opinions
4 opinions in healthcare transactions, 2011-2017 — 3 to the target board, 1 to a special committee. Each links to the filing and the full summary of analyses.
Opinions
4
2011-2017
Typical DCF discount rate
7.7%–9.8%
median of low / high · n=3
Terminal method
exit multiple 2 · perpetuity growth 1
Median disclosed fee
$16.0M
n=2
Deals
| Announced | Target | Acquirer | Segment | EV | EV/EBITDA | EV/Rev | DCF rate |
|---|---|---|---|---|---|---|---|
| 2017-06-06 | Albany Molecular Research | Carlyle Group / GTCR | Pharmaceutical Services | $1.6B | 11.5x | 2.20x | 7.8%–9.8% |
| 2015-08-04 | IPC Healthcare | TeamHealth | Physician Groups | $1.6B | 22.5x | 2.14x | 6.5%–7.5% |
| 2012-10-24 | PSS World Medical | McKesson | Distribution and Equipment Services | $1.9B | 10.6x | 0.84x | 8.0%–10.5% |
| 2011-04-27 | Synthes | Johnson & Johnson | Medical Devices and Supplies | $17B | 9.6x | 4.09x | 8.5%–10.5% |
Segments: Pharmaceutical Services (1) · Physician Groups (1) · Distribution and Equipment Services (1) · Medical Devices and Supplies (1)
Discount rates Credit Suisse has used
| Deal | Discount rate | Terminal | Growth / exit | Implied per share |
|---|---|---|---|---|
| Albany Molecular Research 2017 | 7.8%–9.8% | perpetuity growth | 2.0%–3.0% | $16.50–$32.00 |
| IPC Healthcare 2015 | 6.5%–7.5% | exit multiple | 11.5x–15.5x | $55.45–$81.39 |
| PSS World Medical 2012 | 8.0%–10.5% | exit multiple | 7.5x–9.5x | $24.00–$32.00 |
3,000+ healthcare deal-level valuation multiples
The Valuation database includes financial details for more than 3,000 healthcare M&A transactions, private and public, with deal-level multiples, categorized by segment, type, and year.