Fairness opinions › Bankers
UBS: healthcare fairness opinions
6 opinions in healthcare transactions, 2010-2021 — 5 to the target board, 1 to the acquirer. Each links to the filing and the full summary of analyses.
Opinions
6
2010-2021
Typical DCF discount rate
9.0%–10.0%
median of low / high · n=5
Terminal method
exit multiple 5
Median disclosed fee
$5.0M
n=4
Deals
| Announced | Target | Acquirer | Segment | EV | EV/EBITDA | EV/Rev | DCF rate |
|---|---|---|---|---|---|---|---|
| 2021-02-24 | PRA Health Sciences | ICON | Pharmaceutical Services | $12B | 19.2x | 3.12x | 7.5%–10.0% |
| 2017-08-02 | PharMerica | KKR | Pharmacy / Infusion | $1.4B | 9.6x | 0.60x | 8.0%–9.0% |
| 2013-07-30 | Health Management Associates | Community Health Systems | Hospitals | $7.3B | 9.1x | 1.24x | 7.0%–8.0% |
| 2011-06-27 | Continucare | Metropolitan Health Networks | Physician Groups | $416M | 9.2x | 1.25x | 11.5%–12.5% |
| 2010-06-09 | Eclipsys | Allscripts-Misys Healthcare Solutions | Digital / HealthTech | $1.3B | 14.9x | 2.47x | 10.3%–11.3% |
| 2010-04-05 | Symyx Technologies | Accelrys | Digital / HealthTech | $105M | 10.1x | 1.23x | 14.0%–18.0% |
Segments: Digital / HealthTech (2) · Pharmaceutical Services (1) · Pharmacy / Infusion (1) · Hospitals (1) · Physician Groups (1)
Discount rates UBS has used
| Deal | Discount rate | Terminal | Growth / exit | Implied per share |
|---|---|---|---|---|
| PRA Health Sciences 2021 | 9.0%–10.0% | exit multiple | 15.0x–16.0x | $158.94–$175.53 |
| PharMerica 2017 | 8.0%–9.0% | exit multiple | 7.5x–9.5x | $24.00–$33.90 |
| Health Management Associates 2013 | 6.5%–8.0% | exit multiple | 7.0x–8.0x | $4.35–$8.13 |
| Eclipsys 2010 | 10.0%–12.0% | exit multiple | 9.0x–11.0x | $19.75–$24.50 |
| Symyx Technologies 2010 | 14.0%–18.0% | exit multiple | 7.0x–10.0x | $5.80–$7.45 |
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.