healthcare deal multiples (select transactions) - part i sample report
DESCRIPTION
Healthcare Deal Multiples (Select Transactions) - Part I Number of Pages: 62 Publisher Name: Reevolv Advisory Services Pvt. Ltd Typically, deal multiples are not available easily for analysis. Information is usually obtained through informal sources. To address these issues, we have calculated deal multiples based on company filings and our research. We hope you find this useful. The Part I of report enlists the private equity transactions in healthcare industry for the players as mentioned below - ASG Eye Hospital Forus Axiss Dental International Oncology Centre for Sight NationWide Primary Healthcare DaVita NephroLife NephroPlus Diwan Chand Xcyton The report contains the following details for each transaction - Player profile: Overview of the investee company, Geographic spread - Shareholding Pattern: Instrument, Break up of instrument, Percentage holding - Historical Financials: Profit & Loss Account, Balance Sheet, Key Ratios - Valuations: Investor, Instruments used, Amount Invested, Percentage stake acquired - Deal Multiples: EV/Sales, EV/EBITDA, P/E To order a copy of the report or extracts, please contact Kaustubh Kulkarni / Bhagyashree Mhatre. Landline: +91 22- 243727346 Email: [email protected] We also do customized research. So in case there is any specific transaction (irrespective of the sector) you are looking for, please feel free to get in touch with us. The Part II of the healthcare report will be launched shortly. Thanks & Regards, Kaustubh Kulkarni Reevolv Advisory Services Pvt. Ltd. Address: Shop No 8, Shiv Shakti CHS Ltd, Agar Bazar, SK Bole Road, Dadar West, Mumbai- 400028 M: +91 - 98677 42818 L : +91 - 22 - 2437 2746 E : [email protected] W :www.reevolv.inTRANSCRIPT
Reevolv Advisory Services
Private Limited
Healthcare Deal Multiples (Select Transactions) – Part 1
For any queries or detailed information
contact us on +91 – 22 – 2436 3161 / +91 – 22 – 24372746 or
email at [email protected]
December 2013
Select Healthcare Transactions - Valuation Report
2
Table of Contents
Particulars Page Nos.
1. Executive Summary 3
2. Deal Multiples Summary 4
3. Player Profiles and Deal Multiples
3.1. ASG Eye Hospital 6
3.2. Axiss Dental 11
3.3. Centre for Sight 15
3.4. DaVita NephroLife 23
3.5. Diwan Chand 28
3.6. Forus 35
3.7. International Oncology 40
3.8. NationWide 45
3.9. NephroPlus 50
3.10. Xcyton 55
4. Annexure 60
Select Healthcare Transactions - Valuation Report
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1. Executive Summary
Select Healthcare Transactions - Valuation Report
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2. Deal Multiple Summary
Sr.
No. Healthcare
Name of
Investor/s Date
Amount
Invested
(Rs. Mn)
Year
Pre-
Money
(Rs.Mn)
EV
(Rs. Mn)
Revenue
(Rs. Mn)
EBITDA
(Rs. Mn)
PAT
(Rs. Mn)
EV/
Sales (x)
EV/
EBITDA
(x)
PE (x)
1 ASG Eye
Hospital
Sequoia
Capita January 15, 2013
FY 2012
FY 2013
2 Axiss Dental
India
Equity
Partners
May 23, 2012
FY 2012
FY 2013
June 19, 2013
FY 2012
FY 2013
3 Centre for
Sight
Matrix
Partners
October 14, 2010
FY 2010
FY 2011
May 31, 2013
FY 2012
FY 2013
4 DaVita
NephroLife
New
Enterprise
Associates
June 6, 2011
FY 2011
FY 2012
February 7, 2013
FY 2012
FY 2013
DaVita
June 6, 2011
FY 2011
FY 2012
February 7, 2013
FY 2012
FY 2013
Select Healthcare Transactions - Valuation Report
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Sr.
No. Healthcare
Name of
Investor/s Date
Amount
Invested
(Rs. Mn)
Year
Pre-
Money
(Rs.Mn)
EV
(Rs. Mn)
Revenue
(Rs. Mn)
EBITDA
(Rs. Mn)
PAT
(Rs. Mn)
EV/
Sales (x)
EV/
EBITDA
(x)
PE (x)
5 Diwan Chand
Asian Healthcare Fund
March 11, 2010
FY 2009
FY 2010
FY 2011
6 Forus
IDG Ventures
May 15, 2012
FY 2012
FY 2013
June 5, 2013
FY 2012
FY 2013
Accel India
May 15, 2012
FY 2012
FY 2013
June 5, 2013
FY 2012
FY 2013
7 International Oncology
Rajasthan Ventures
July 4, 2012
FY 2012
FY 2013
8 NationWide Northwest Ventures Partners
August 27, 2012
FY 2012
FY 2013
9 NephroPlus Bessemer Venture Partners
November 22, 2011
FY 2011
FY 2012
December 14, 2012
FY 2012
FY 2013
10 Xcyton Fidelity India Venture
November 25, 2011
FY 2011
FY 2012
** - Excluding amount invested in secondary stake buyout
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3. Player Profiles and Deal Multiples
3.1 XXXX
3.1.1. Overview
Description
Company Name
Founder
Year of Inception/
Incorporation
Inception –
Incorporation –
Brand
Name of Investor/s
Total no. centres
Treatment
Services
Expansion Plans
Source – Company Website and Reevolv Research
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3.1.2. Location
Northern Region
No. of Centres
Main Cities
Eastern Region
No. of Centres
Main Cities
Western Region
No. of Centres
Main Cities
Southern Region
No. of Centres
Main Cities
Source – Company Website and Reevolv Research
3.1.3. Shareholding Pattern as on AGM
Equity shares Preference shares
Number Paid up Percentage Number Paid up Percentage
Directors/
Relatives of Directors
Venture Capital
Total
Source – Company filings
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3.1.4. Financials
Profit & Loss Account for the year ended 31st March(Rs. Mn)
FY2009 FY2010 FY2011 FY2012 FY2013
Revenue from Operations
Other Income
Total Revenues
Cost of Material Consumed
Administrative and General Expenses
Employee Expenses
Selling and Distribution Expenses
Total Expenditure
EBITDA
Depreciation
EBIT
Interest
PBT
PAT
Balance Sheet as at 31st March (Rs. Mn)
FY2009 FY2010 FY2011 FY2012 FY2013
Share Capital
Reserves & Surplus
Shareholders’ funds
Secured Loan
Unsecured Loan
Loan Funds
Deferred Tax Liability
Total Liabilities
Gross Block
Net Block
Capital work in progress
Investments
Inventories
Debtors
Other Current Assets
Total Current Assets & Advances
Current Liabilities
Provisions
Total Current Liabilities & Provisions
Net Working Capital excl. Cash & Bank
Cash & Bank
Net Working Capital incl. Cash & Bank
Total Assets
Source: Company Filings, Totals may not tally due to rounding off errors
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Key Ratios FY2009 FY2010 FY2011 FY2012 FY2013
Expenditure Ratios
Cost of material consumed as a % of total revenues
Administrative & Other Expenses as a % of total revenues
Employee Expenses as a % of total revenues
Selling and Distribution Expenses as a % of total revenues
Profitability Ratios
EBITDA %
EBIT%
PBT %
PAT %
Return Ratios
ROCE %
ROE %
Financial Ratios
Total Debt/ Net Worth
Secured Debt/ Net Worth
Total Debt to EBITDA
Turnover Ratios
Working Capital Turnover Ratio
Net Fixed Assets Turnover Ratio
Inventory Days
Debtors Days
DuPont Analysis
EBIT/ Total Income
PAT/EBIT
PAT/ Total Income
Total Assets/ Net Worth
Total Income/ Total Assets
Source: Company Filings and Reevolv Research
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3.1.5. Valuation
Month & Year
Investor
Investor Company Name
Instrument 1
Instrument 2
Amount invested – Instrument 1 (Rs. Mn)
Amount invested – Instrument 2 (Rs. Mn)
Total Amount invested (Rs. Mn)
Instrument 1 – Equivalent stake (%)
Instrument 2 – Equivalent stake (%)
Total equivalent stake (%)
Primary stake %
Secondary stake %
Cumulative stake %
Source - Company filings and Reevolv Research
Month & Year
Pre-money (Rs. Mn)
Debt
Cash and cash equivalents
Net Debt
EV
Post-money (Rs. Mn)
Revenues (Rs. Mn)
EBITDA (Rs. Mn)
PAT (Rs. Mn)
ROCE %
ROE %
EV/ Sales (x)
EV/EBITDA (x)
PE (x)
Source - Company filings and Reevolv Research
Note:
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4. Annexure
4.1. Ratios
Key Ratios
Cost of Material Consumed % Cost of Material Consumed
Total Revenues X 100
Employee Expenses % Employee Expenses
Total Revenues X 100
Selling & Distribution Expenses % Selling & Distribution Expenses
Total Revenues X 100
Administrative Expenses % Administrative Expenses
Total Revenues X 100
EBITDA % EBITDA
Total Revenues X 100
EBIT % EBIT
Total Revenues X 100
PBT % PBT
Total Revenues X 100
PAT % PAT
Total Revenues X 100
ROCE % EBIT
Capital Employed X 100
ROE % PAT
Net Worth X 100
Capital Employed Total of Asset / Liabilities
(Liabilities = Shareholders funds + Loan Funds + Deferred Tax + Minority Interest)
Working Capital Turnover Ratio Total Revenues
Net Current Assets excl Cash Bank
Net Fixed Assets Turnover Ratio
Total Revenues
(Net Fixed Assets excl Capital Work in Progress)
Inventory Days Inventory
(Cost of Material Consumed) X 365
Debtors Days Debtors
Total Revenues X 365
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4.2. Abbreviations
Description
CCPS Compulsory Convertible Preference Shares
EV Enterprise Value
CCD Compulsory Convertible Debentures
EBITDA Earnings before interest, tax, depreciation and amortization
EBIT Earnings before interest and tax
PBT Profit before tax
PAT Profit after tax
ROCE Return on capital employed
ROE Return on equity
P/E Price to earnings
NA Not Available
NM Not Meaningful
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About Reevolv
Reevolv is a boutique consulting and investment banking company offering a "One Stop Shop" in the
areas of business strategy, financial advisory and operations consulting to corporates and private equity
funds.
We service our clients in their constant re-evolution process through our in-depth industry research,
domain understanding, our timely and superior execution capabilities and strong network to provide
customized solutions to our clients.
With a host of implementation focused services spanning across functions, we ensure that our clients
reach the desired goals and objectives in most efficient manner. We achieve sustainability of our
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Strategic, Financial and Operational needs of the clients on a regular basis to ensure adaptability and
flexibility to suit the market and industry dynamics.
Founded in 2008, Reevolv is a team of CAs, MBAs and Engineers with functional and industry expertise
and diverse background of investment banking and management consulting.
Disclaimer
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Contact Details
For any queries or detailed information
contact us on +91 – 22 – 2436 3161 / +91 22- 24372746 or email at [email protected]
Address: Shop No 8, Shiv Shakti CHS Ltd, Agar Bazar, S.K. Bole Road, Dadar – West,
Mumbai – 400 028
You can also email the research analyst at
Shilpa Bhattar
Kaustubh Kulkarni