Fairness opinions › Bankers
Jefferies: healthcare fairness opinions
12 opinions in healthcare transactions, 2010-2024 — 8 to the target board, 3 to the acquirer, 1 to a special committee. Each links to the filing and the full summary of analyses.
Opinions
12
2010-2024
Typical DCF discount rate
10.5%–11.8%
median of low / high · n=12
Terminal method
perpetuity growth 7 · exit multiple 5
Median disclosed fee
$7.5M
n=12
Deals
| Announced | Target | Acquirer | Segment | EV | EV/EBITDA | EV/Rev | DCF rate |
|---|---|---|---|---|---|---|---|
| 2024-05-29 | Surmodics | GTCR | Medical Devices and Supplies | $616M | 36.9x | 4.98x | 13.1%–14.1% |
| 2024-04-08 | Model N | Vista Equity Partners | Digital / HealthTech | $1.3B | 24.5x | 4.73x | 10.0%–11.0% |
| 2022-03-29 | LHC Group | UnitedHealth Group | Home-Based Services | $6.1B | 20.8x | 2.26x | 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% |
| 2017-10-30 | Advanced Accelerator Applications | Novartis | Diagnostics / Life Sciences | $3.9B | — | 17.73x | 14.2%–15.2% |
| 2016-08-29 | USMD Holdings | WellMed Medical Management | Physician Groups | $255M | 15.5x | 0.72x | 9.4%–10.4% |
| 2015-09-15 | Sirona Dental Systems | DENTSPLY | Medical Devices and Supplies | $5.7B | 16.2x | 4.78x | 9.4%–10.4% |
| 2013-11-18 | Patheon | JLL Partners | Pharmaceutical Services | $2.6B | 12.7x | 2.27x | 9.0%–11.0% |
| 2012-06-11 | IntegraMed America | Sagard Capital Partners | Professional Services | $178M | 8.5x | 0.59x | 13.5%–14.5% |
| 2012-05-02 | Kensey Nash | Royal DSM | Medical Devices and Supplies | $360M | 11.4x | 4.03x | 10.0%–12.0% |
| 2010-12-27 | ReSearch Pharmaceutical Services | Warburg Pincus | Pharmaceutical Services | $227M | 12.4x | 0.89x | 12.0%–13.0% |
Segments: Medical Devices and Supplies (3) · Home-Based Services (3) · Pharmaceutical Services (2) · Digital / HealthTech (1) · Diagnostics / Life Sciences (1) · Physician Groups (1) · Professional Services (1)
Discount rates Jefferies has used
| Deal | Discount rate | Terminal | Growth / exit | Implied per share |
|---|---|---|---|---|
| Surmodics 2024 | 13.1%–14.1% | exit multiple | 13.0x–15.0x | $39.34–$45.89 |
| Model N 2024 | 10.0%–11.0% | perpetuity growth | 3.5%–5.5% | $22.08–$33.62 |
| LHC Group 2022 | 10.6%–11.6% | perpetuity growth | 4.5%–5.5% | $100.34–$152.85 |
| Almost Family 2017 | 10.5%–11.5% | perpetuity growth | 4.5%–5.5% | $37.73–$52.87 |
| LHC Group 2017 | 11.0%–12.0% | perpetuity growth | 4.5%–5.5% | $37.73–$52.87 |
| Advanced Accelerator Applications 2017 | 14.2%–15.2% | perpetuity growth | -17.5%–-7.5% | $68.59–$77.29 |
| USMD Holdings 2016 | 9.4%–10.4% | exit multiple | 7.0x–8.0x | $17.28–$20.22 |
| Sirona Dental Systems 2015 | 9.4%–10.4% | exit multiple | 12.5x–14.5x | $100.17–$116.25 |
| Patheon 2013 | 9.2%–10.2% | exit multiple | 8.0x–10.0x | $9.37–$12.44 |
| IntegraMed America 2012 | 13.5%–14.5% | perpetuity growth | 1.0%–3.0% | $14.38–$17.17 |
| Kensey Nash 2012 | 10.0%–12.0% | perpetuity growth | 4.0%–5.0% | $43.17–$68.64 |
| ReSearch Pharmaceutical Services 2010 | 12.0%–13.0% | exit multiple | 7.0x–8.0x | $7.77–$14.90 |
Peer companies Jefferies selects most often
Amedisys, Inc. (4) · Addus HomeCare Corporation (3) · Almost Family, Inc. (3) · LHC Group, Inc. (3) · Chemed Corporation (3) · AmSurg Corp. (2) · ICU Medical, Inc. (2) · PAREXEL International Corporation (2)
Precedent transactions Jefferies cites most often
Prospect Medical Holdings, Inc. / Leonard Green & Partners, L.P. (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.