Change Healthcare acquired by Optum: fairness opinion
Announced January 6, 2021 · Merger ·
DEFM14A filed March 5, 2021
Enterprise value
$14B
EV / LTM EBITDA
13.8x
EBITDA $996M · 32% margin
EV / LTM revenue
4.46x
revenue $3.1B
DCF discount rate
6.8%–7.8%
Deal terms
Consideration—
Price per share—
Premium—
Premium basis—
StructureMerger
Termination fee—
Reverse termination fee—
Go-shopNone
Outside date—
FilingDEFM14A · EDGAR index
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.
Management projections
| Projection year | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
|---|---|---|---|---|---|---|
| Revenue | $2.9B | $3.3B | $3.5B | $3.7B | $3.9B | 8.1% |
| Revenue growth | -6.0% | 14.4% | 6.3% | 5.9% | 6.1% | |
| EBITDA | $888M | $1.1B | $1.1B | $1.2B | $1.3B | 10.8% |
| EBITDA growth | -10.8% | 18.4% | 9.0% | 8.1% | 8.1% | |
| EBITDA margin | 31% | 32% | 33% | 33% | 34% | |
| Implied EV / EBITDA | 15.5x | 13.1x | 12.0x | 11.1x | 10.2x |
Year-1 growth is against LTM at announcement ($3.1B revenue, $996M EBITDA); later years are year over year.
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