Fairness opinions › Bankers
Lazard: healthcare fairness opinions
11 opinions in healthcare transactions, 2010-2023 — 9 to the target board, 1 to the acquirer, 1 to a special committee. Each links to the filing and the full summary of analyses.
Opinions
11
2010-2023
Typical DCF discount rate
8.9%–10.0%
median of low / high · n=10
Terminal method
perpetuity growth 7 · exit multiple 3
Median disclosed fee
$10.0M
n=9
Deals
| Announced | Target | Acquirer | Segment | EV | EV/EBITDA | EV/Rev | DCF rate |
|---|---|---|---|---|---|---|---|
| 2023-08-28 | Abcam | Danaher | Diagnostics / Life Sciences | $5.7B | 29.1x | 11.05x | 8.9%–10.8% |
| 2022-04-06 | Tivity Health | Stone Point Capital | Physician Groups | $2.0B | 12.1x | 3.41x | 10.0%–11.0% |
| 2020-08-05 | Livongo Health | Teladoc Health | Digital / HealthTech | $14B | 155.5x | 23.14x | 8.3%–10.2% |
| 2018-11-12 | Athenahealth | Veritas Capital / Evergreen Coast Capital | Digital / HealthTech | $5.7B | 15.5x | 4.24x | 10.5%–12.0% |
| 2018-03-08 | Express Scripts Holding | Cigna | Managed Care | $62B | 11.6x | 0.75x | 8.0%–9.5% |
| 2017-09-06 | Landauer | Fortive | Outsourced Services | $757M | 18.2x | 4.88x | 8.8%–9.8% |
| 2017-04-11 | Alliance Healthcare Services | Tahoe Investment Group Co. | Specialty Outpatient Facilities | $683M | 5.7x | 1.33x | 9.0%–10.0% |
| 2013-07-30 | Health Management Associates | Community Health Systems | Hospitals | $7.3B | 9.1x | 1.24x | 7.0%–8.0% |
| 2012-03-07 | Transcend Services | Nuance Communications | Outsourced Services | $332M | 10.8x | 2.29x | 10.0%–12.0% |
| 2011-10-03 | Pharmaceutical Product Development | Hellman & Friedman and The Carlyle Group | Pharmaceutical Services | $3.9B | 11.4x | 2.56x | 8.5%–9.5% |
| 2010-07-12 | Micrus Endovascular | Johnson & Johnson | Medical Devices and Supplies | $397M | 23.1x | 3.70x | 11.0%–13.0% |
Segments: Digital / HealthTech (2) · Outsourced Services (2) · Diagnostics / Life Sciences (1) · Physician Groups (1) · Managed Care (1) · Specialty Outpatient Facilities (1) · Hospitals (1) · Pharmaceutical Services (1) · Medical Devices and Supplies (1)
Discount rates Lazard has used
| Deal | Discount rate | Terminal | Growth / exit | Implied per share |
|---|---|---|---|---|
| Tivity Health 2022 | 10.0%–11.0% | perpetuity growth | 2.0%–3.0% | $26.95–$33.90 |
| Livongo Health 2020 | 8.0%–9.0% | perpetuity growth | 3.5%–4.5% | $118.00–$187.00 |
| Athenahealth 2018 | 10.0%–11.0% | exit multiple | 5.3%–7.1% | $125.00–$151.00 |
| Express Scripts Holding 2018 | 8.0%–9.0% | perpetuity growth | 1.0%–2.0% | $83.00–$109.00 |
| Landauer 2017 | 8.8%–9.8% | exit multiple | 3.8%–5.9% | $46.27–$62.10 |
| Alliance Healthcare Services 2017 | 9.0%–10.0% | perpetuity growth | 0.8%–1.3% | $8.39–$17.44 |
| Health Management Associates 2013 | 7.0%–8.0% | perpetuity growth | 3.3%–3.8% | $2.00–$9.50 |
| Transcend Services 2012 | 10.0%–12.0% | perpetuity growth | 3.5%–4.5% | $24.00–$36.00 |
| Pharmaceutical Product Development 2011 | 8.0%–10.0% | perpetuity growth | 1.0%–2.0% | $31.20–$48.73 |
| Micrus Endovascular 2010 | 11.0%–13.0% | exit multiple | 4.9%–8.3% | $22.11–$28.49 |
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.