Guggenheim Securities: healthcare fairness opinions
12 opinions in healthcare transactions, 2016-2024 — 12 to the target board. Each links to the filing and the full summary of analyses.
Deals
| Announced | Target | Acquirer | Segment | EV | EV/EBITDA | EV/Rev | DCF rate |
|---|---|---|---|---|---|---|---|
| 2024-12-11 | Patterson Companies | Patient Square Capital | Distribution and Equipment Services | $4.1B | 12.0x | 0.61x | 8.6%–10.2% |
| 2023-06-26 | Amedisys | UnitedHealth Group | Home-Based Services | $3.6B | 15.2x | 1.59x | 8.3%–10.5% |
| 2021-01-04 | Magellan Health | Centene | Managed Care | $2.0B | 15.6x | 0.45x | 7.0%–8.0% |
| 2019-11-04 | Wright Medical Group | StrykerCorp. | Medical Devices and Supplies | $4.1B | 14.6x | 3.49x | 7.0%–8.4% |
| 2018-06-11 | Envision Healthcare Holdings | KKR | Physician Groups | $9.9B | 10.0x | 1.16x | 8.0%–9.0% |
| 2017-12-19 | Kindred Healthcare | Humana/TPG/WCAS | Hospitals | $4.1B | 8.0x | 0.68x | 8.5%–9.5% |
| 2017-11-16 | Almost Family | LHC Group | Home-Based Services | $933M | 14.3x | 1.16x | 8.5%–10.0% |
| 2017-11-16 | LHC Group | Almost Family | Home-Based Services | $1.3B | 15.5x | 1.25x | 8.5%–10.0% |
| 2017-02-13 | ZELTIQ Aesthetics | Allergan | Medical Devices and Supplies | $2.4B | 32.9x | 5.03x | 10.1%–11.8% |
| 2016-12-02 | Vascular Solutions | Teleflex | Medical Devices and Supplies | $976M | 25.7x | 5.86x | 9.4%–11.4% |
| 2016-09-27 | EndoChoice Holdings | Boston Scientific | Medical Devices and Supplies | $458M | — | 4.28x | 11.8%–13.8% |
| 2016-04-28 | St. Jude Medical | Abbott Laboratories | Medical Devices and Supplies | $29B | 15.2x | 4.70x | 7.0%–8.5% |
Segments: Medical Devices and Supplies (5) · Home-Based Services (3) · Distribution and Equipment Services (1) · Managed Care (1) · Physician Groups (1) · Hospitals (1)
Discount rates Guggenheim Securities has used
| Deal | Discount rate | Terminal | Growth / exit | Implied per share |
|---|---|---|---|---|
| Amedisys 2023 | 8.3%–10.5% | perpetuity growth | 2.0%–3.0% | $63.75–$103.25 |
| Magellan Health 2021 | 7.5%–8.5% | perpetuity growth | 1.0%–2.0% | $87.75–$111.50 |
| Wright Medical Group 2019 | 7.0%–8.4% | perpetuity growth | 2.0%–3.0% | $22.25–$40.25 |
| Envision Healthcare Holdings 2018 | 8.0%–9.0% | perpetuity growth | 1.0%–1.5% | $34.75–$71.25 |
| Kindred Healthcare 2017 | 8.0%–9.3% | perpetuity growth | 1.8%–2.3% | $1.40–$10.34 |
| Almost Family 2017 | 8.5%–10.0% | perpetuity growth | 1.8%–2.3% | $41.71–$56.52 |
| LHC Group 2017 | 8.5%–10.0% | perpetuity growth | 1.8%–2.3% | $41.71–$56.52 |
| ZELTIQ Aesthetics 2017 | 10.1%–11.8% | perpetuity growth | 2.0%–3.0% | $43.00–$62.30 |
| Vascular Solutions 2016 | 9.4%–11.4% | perpetuity growth | 2.0%–3.0% | $38.50–$55.25 |
| EndoChoice Holdings 2016 | 11.8%–13.8% | perpetuity growth | 2.0%–4.0% | $4.50–$7.10 |
| St. Jude Medical 2016 | 7.0%–8.5% | perpetuity growth | 1.0%–2.0% | $74.00–$114.00 |
Peer companies Guggenheim Securities selects most often
Chemed Corporation (4) · Amedisys, Inc. (3) · LHC Group, Inc. (3) · Almost Family, Inc. (3) · AtriCure, Inc. (2) · Nevro Corp. (2) · Addus HomeCare Corporation (2) · K2M Group Holdings Inc. (2) · Spectranetics Corp. (2)
Precedent transactions Guggenheim Securities cites most often
Given Imaging Ltd. / Covidien plc (4) · HeartWare International, Inc. / Medtronic plc (3) · Sage Products, LLC / Stryker Corporation (3) · Conceptus Inc. / Bayer Healthcare LLC (3) · Healthpoint Biotherapeutics / Smith & Nephew plc (3) · SonoSite, Inc. / Fujifilm Holdings Corporation (3) · Gentiva Health Services, Inc. / Kindred Healthcare, Inc. (2) · Harden Healthcare Holdings, Inc. / Gentiva Health Services, Inc. (2) · Vascular Solutions Inc. / Teleflex Inc. (2) · LDR Holding Corp. / Zimmer Biomet Holdings, Inc. (2) · Thoratec Corporation / St. Jude Medical, Inc. (2) · ZOLL Medical Corporation / Asahi Kasei Corporation (2) · AGA Medical Holdings, Inc. / St. Jude Medical, Inc. (2) · Micrus Endovascular Corp. / Johnson & Johnson (2) · ev3 Inc. / Covidien plc (2)