Fairness opinions › Bankers

Evercore: healthcare fairness opinions

8 opinions in healthcare transactions, 2015-2022 — 5 to the target board, 1 to the acquirer, 2 to a special committee. Each links to the filing and the full summary of analyses.

Opinions
8
2015-2022
Typical DCF discount rate
8.0%–9.0%
median of low / high · n=8
Terminal method
both 4 · perpetuity growth 3 · exit multiple 1
Median disclosed fee
$10.2M
n=7

Deals

AnnouncedTargetAcquirerSegment EVEV/EBITDAEV/RevDCF rate
2022-01-06 Vocera Communications StrykerCorp. Digital / HealthTech $2.6B52.3x9.35x8.0%–9.0%
2021-08-19 Inovalon Holdings Nordic Capital / Insight Partners Digital / HealthTech $7.3B26.9x9.42x8.0%–9.0%
2021-04-12 Nuance Communications Microsoft Digital / HealthTech $19B45.9x13.53x8.0%–9.0%
2018-06-11 Envision Healthcare Holdings KKR Physician Groups $9.9B10.0x1.16x8.0%–9.0%
2016-06-15 AmSurg Envision Healthcare Holdings Specialty Outpatient Facilities $7.1B12.0x2.29x6.3%–7.2%
2016-06-15 Envision Healthcare Holdings AmSurg Physician Groups $8.2B11.2x1.23x6.5%–7.5%
2016-04-27 ExamWorks Group Leonard Green & Partners Physician Groups $2.0B11.5x2.05x7.0%–8.0%
2015-08-04 IPC Healthcare TeamHealth Physician Groups $1.6B22.5x2.14x6.5%–7.5%

Segments: Physician Groups (4) · Digital / HealthTech (3) · Specialty Outpatient Facilities (1)

Discount rates Evercore has used

DealDiscount rateTerminalGrowth / exitImplied per share
Vocera Communications 2022 8.0%–9.0% both 5.0%–6.0% $12.56–$89.66
Inovalon Holdings 2021 8.0%–9.0% perpetuity growth 3.0%–4.0% $33.83–$51.31
Nuance Communications 2021 8.0%–9.0% perpetuity growth 4.0%–5.0% $29.23–$48.14
Envision Healthcare Holdings 2018 8.0%–9.0% both 1.0%–2.0% $34.26–$80.16
AmSurg 2016 6.3%–7.2% both 2.5%–3.0% $93.15–$130.00
Envision Healthcare Holdings 2016 6.5%–7.5% both 2.3%–2.8% $39.98–$55.48
ExamWorks Group 2016 7.0%–8.0% perpetuity growth 3.0%–4.0% $25.31–$48.98
IPC Healthcare 2015 8.5%–10.5% exit multiple 10.0x–12.0x $55.03–$72.48

Peer companies Evercore selects most often

MEDNAX, Inc. (5) · Surgery Partners, Inc. (3) · Omnicell, Inc. (2) · R1 RCM Inc. (2) · Vocera Communications, Inc. (2) · NICE Ltd. (2) · PTC Inc. (2) · Cerence Inc. (2) · TeamHealth, Inc. (2) · Air Methods Corp. (2) · The Providence Service Corporation (2) · Surgical Care Affiliates, Inc. (2) · Envision Healthcare Holdings, Inc. (2) · Team Health Holdings, Inc. (2)

Precedent transactions Evercore cites most often

IPC Healthcare, Inc. / TeamHealth Holdings, Inc. (2) · Sheridan Healthcare, Inc. / AmSurg Corp. (2) · CHG Healthcare Services Inc. / Leonard Green & Partners LP / Ares Management LLC (2) · Sheridan Healthcare, Inc. / Hellman & Friedman LLC (2)

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.
See the Valuation database →