healthcare report q4 2016 - sdr ventures...financial buyer inv. date select corporate investments...

http://sdrventures.com/


http://khn.org/news/a-consumers-guide-to-medicares-new-rules-on-doctor-pay/

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https://www.cms.gov/Medicare/Quality-Initiatives-Patient-Assessment-Instruments/Value-Based-Programs/MACRA-MIPS-and-APMs/MIPS-Scoring-Methodology-slide-deck.pdf

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Strategic89%

Financial11%

Date Target Buyer(s) SegmentAmount

($ in Mil)

TEV/

Rev

TEV/

EBITDA12/19/2016 Epic Health Services, Inc. Bain Capital Investors LLC Provider Services $950.00 - -

12/15/2016 Capsugel Holdings US, Inc. Lonza Group AG Medical Devices &

Products

5,500.00 - -

12/12/2016 Alliance HealthCare Services, Inc. Tahoe Investment Group Co., Ltd. Provider Services 617.20 1.23x 5.24x

11/30/2016 Comfort Medical, LLC Coloplast A/S Medical Product

Distribution

160.00 - -

11/21/2016 Veridicus Health LLC Magellan Pharmacy Solutions, Inc. Pharma Services 72.50 - -

10/31/2016 Team Health Holdings, Inc. The Blackstone Group LP (Strategic

Partners Group)

Practice Management 5,914.37 1.35x 14.73x

10/21/2016 Everyday Health, Inc. Ziff Davis LLC Practice Management 447.17 1.76x 15.43x

10/18/2016 Abbott Laboratories /Medical Device Business/ Terumo Corp. Medical Devices &

Products

1,120.00 4.18x -

10/13/2016 Five Star Quality Care, Inc. Senior Star Management Co. Long Term & Behavioral

Care

177.88 0.13x 5.53x


http://sdrventures.com/healthcare-ma-update/?utm_source=Quarterly Report&utm_campaign=Q4 2016 Healthcare Report&utm_medium=PDF

Financial Buyer Inv. Date Select Corporate Investments7/26/2016 ▪ WellTrackONE, LLC5/17/2016 ▪ Noble.MD3/10/2016 ▪ Oncora Medical, Inc.12/22/2015 ▪ CoheroHealth, LLC6/11/2015 ▪ RiboNova Inc.

3/1/2016 ▪ Cleveland HeartLab, Inc.3/1/2016 ▪ Minimally Invasive Devices, Inc.2/18/2016 ▪ American Botanicals LLC11/20/2015 ▪ Recursion Pharmaceuticals, LLC10/1/2015 ▪ Genico, Inc.

1/5/2016 ▪ Entac Medical LLC9/1/2015 ▪ Life Detection Systems, LLC8/18/2015 ▪ LifeLinks,LLC8/11/2015 ▪ Vital Metrix Inc.8/11/2015 ▪ Pro Hydration Therapy, Inc.

3/1/2016 ▪ Cleveland HeartLab, Inc.3/1/2016 ▪ Minimally Invasive Devices, Inc.2/18/2016 ▪ American Botanicals LLC11/20/2015 ▪ Recursion Pharmaceuticals, LLC10/1/2015 ▪ Genico, Inc.

5/3/2016 ▪ IZI Medical Products, Inc.11/2/2015 ▪ Specialdocs Consultants, Inc.4/7/2015 ▪ Chicagoland Smile Group2/20/2015 ▪ Summit Medical, Inc.

Advantage Capital Partners

Innova Memphis Inc

Advantage Capital Partners

Shore Capital Partners, LLC

BioAdvance

Strategic Buyer Inv. Date Select Corporate Acquisitions10/3/2016 ▪ Fidere Anesthesia Consultants, Inc.9/8/2016 ▪ Ambulatory Anesthesia Associates, Inc. and Genesis Anesthesia Services, Inc.7/5/2016 ▪ AllegiantMD, Inc.7/5/2016 ▪ Resolute Anesthesia and Pain Solutions, LLC And South Lake Anesthesia Services, P.A.5/24/2016 ▪ Jandee Anesthesiology Partners, PLLC and Karadan Anesthesiology and Pain

Management, LLP10/3/2016 ▪ Florida Emergency Physicians, Kang & Associates, M.D, Inc.9/15/2016 ▪ EmMed, P.C.8/22/2016 ▪ Grossmont Emergency Medical Group8/18/2016 ▪ Anesthesia Associates of Cincinnati Inc.7/5/2016 ▪ Lake County Anesthesia Associates, P.A.

11/8/2016 ▪ Liberty Healthcare Services, Inc.8/4/2016 ▪ Jed Adam Enterprises, LLC8/1/2016 ▪ Pediatric Special Care, Inc.5/10/2016 ▪ Rehabilitation Associates, PC.9/30/2015 ▪ HomeFirst Healthcare Services, LLC

9/6/2016 ▪ Two Dermatology Clinics in Western Pennsylvania8/19/2016 ▪ Dermatology Clinic, P.C.8/5/2016 ▪ Philadelphia Institute of Dermatology, LLC7/18/2016 ▪ Denver Skin Clinic5/31/2016 ▪ Andrea Cambio, M.D., P.L.

8/10/2016 ▪ Signature Healthcare Solutions, SC11/19/2015 ▪ Heartland Geriatrics, LLC11/13/2015 ▪ Amity Health, LLC10/22/2015 ▪ Hospital Medicine Consultants, LLC10/1/2015 ▪ Ocala Hospital Group, PA and Hospitalists of Ocala, LLC and Ocala Geriatric Services

Sheridan Healthcare, Inc.

Team Health Holdings, Inc.

Epic Health Services, Inc.

Advanced Dermatology & Cosmetic Surgery Inc.

IPC Healthcare, Inc.


-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

Dental Products Dental Providers Medical Devices & Products

Medical Product Distribution Specialty Providers Pharma Services

Practice Management Provider Services Long Term & Behavioral Care

General Providers S&P 500

Company Name SymbolMarket Cap

($ in Mil)Price ($)

Quarter

Change

YTD

Change

% of 52

Week High

Est.

Revenue

Growth

EBITDA

Margin

TEV/

Rev

TEV/

EBITDA

Price/

EPS

TEV/

NTM

Revenue

TEV/

NTM

EBITDA

Zimmer Biomet Holdings, Inc. ZBH 20,671$ 103.20$ -20.6% 0.6% 77.5% 4.3% 34.7% 4.2x 12.5x 56.4x 4.0x 10.1x

DENTSPLY SIRONA, Inc. XRAY 13,329 57.73 -2.9% -5.1% 87.7% 21.9% 22.1% 4.3x 20.7x NM 3.6x 13.7x

Henry Schein, Inc. HSIC 12,211 151.71 -6.9% -4.1% 82.9% 7.2% 8.7% 1.2x 14.3x 25.2x 1.2x 13.1x

Align Technology, Inc. ALGN 7,661 96.13 2.5% 46.0% 94.2% 26.5% 24.8% 6.9x 27.2x 41.1x 5.6x 20.7x

Patterson Cos., Inc. PDCO 4,017 41.03 -10.7% -9.2% 81.4% 2.1% 7.2% 0.9x 10.1x 19.1x 0.9x 11.4x

Cantel Medical Corp. CMN 3,285 78.75 1.0% 26.7% 88.7% 17.7% 18.3% 4.9x 26.9x 50.8x 4.1x 20.3x

BIOLASE, Inc. BIOL 95 1.40 -20.0% 66.4% 70.7% NM (21.6%) 1.6x NM (5.6x) NM NM

Milestone Scientific, Inc. MLSS 42 1.40 -35.2% -40.4% 43.8% 13.7% (47.9%) 3.4x NM (6.1x) 3.0x NM

Pro-Dex, Inc. PDEX 19 4.70 2.6% 94.6% 70.4% NM 10.1% 0.8x 9.1x 15.7x 0.7x 8.7x

Segment Average $6,814 (10.0%) 19.5% 77.5% 13.3% 6.2% 3.1x 17.3x 24.6x 2.9x 14.0xSegment Median $4,017 (6.9%) 0.6% 81.4% 13.7% 10.1% 3.4x 14.3x 22.2x 3.3x 13.1x

Market Stats Operating Stats LTM Multiples NTM Multiples


($ in Mil)Price ($)

Quarter

Change

YTD

Change

% of 52

Week High

Est.

Revenue

Growth

EBITDA

Margin

TEV/

Rev

TEV/

EBITDA

Price/

EPS

TEV/

NTM

Revenue

TEV/

NTM

EBITDA

Birner Dental Management Services, Inc. BDMS 30$ 16.00$ -7.5% 42.2% 80.4% NM 2.0% 0.6x 15.3x (24.2x) NM NM

American Mobile Dental Corp. AMBD 0 NA NA NA NA NM NM NM NM NM NM NM

Union Dental Holdings, Inc. UDHI 0 0.00 -30.0% -75.9% 9.7% NM NM NM NM NM NM NM




($ in Mil)Price ($)

Quarter

Change

YTD

Change

% of 52

Week High

Est.

Revenue

Growth

EBITDA

Margin

TEV/

Rev

TEV/

EBITDA

Price/

EPS

TEV/

NTM

Revenue

TEV/

NTM

EBITDA

Medtronic Plc MDT 97,802$ 71.23$ -17.6% -7.4% 79.8% 5.1% 30.4% 4.1x 13.8x 23.7x 3.9x 12.2x

Abbott Laboratories ABT 56,551 38.41 -9.2% -14.5% 83.9% 4.4% 23.7% 2.9x 13.7x 42.4x 2.8x 10.7x

Stryker Corp. SYK 44,863 119.81 2.9% 28.9% 97.0% 12.2% 27.0% 4.5x 16.0x 27.3x 4.0x 14.2x

Becton, Dickinson & Co. BDX 35,301 165.55 -7.9% 7.4% 91.1% (1.9%) 24.0% 3.6x 13.8x 36.9x 3.8x 12.4x

Boston Scientific Corp. BSX 29,453 21.63 -9.1% 17.3% 87.3% 9.0% 25.6% 4.2x 18.5x 432.6x 4.0x 13.8x

Baxter International, Inc. BAX 24,117 44.34 -6.8% 16.2% 88.4% 3.4% 22.4% 2.4x 12.9x 5.0x 2.4x 10.7x

Intuitive Surgical, Inc. ISRG 24,572 634.17 -12.5% 16.1% 87.2% 12.2% 40.9% 8.5x 21.8x 34.2x 7.8x 20.4x

Zimmer Biomet Holdings, Inc. ZBH 20,671 103.20 -20.6% 0.6% 77.5% 4.3% 34.7% 4.2x 12.5x 56.4x 4.0x 10.1x

St. Jude Medical, Inc. STJ 22,912 80.19 0.5% 29.8% 95.5% 6.3% 29.1% 4.7x 19.5x 35.2x 4.5x 15.1x

Edwards Lifesciences Corp. EW 20,034 93.70 -22.3% 18.6% 77.0% 13.6% 29.3% 6.8x 23.5x 37.0x 6.1x 18.8x

C.R. Bard, Inc. (New Jersey) BCR 16,518 224.66 0.2% 18.6% 93.8% 7.9% 31.6% 4.7x 15.2x 33.5x 4.5x 13.5x

ABIOMED, Inc. ABMD 4,888 112.68 -12.4% 24.8% 84.8% 43.1% 15.6% 12.1x 59.3x 116.2x 8.7x 36.7x

Integra LifeSciences Holdings Corp. IART 3,205 42.90 3.9% 26.6% 96.5% 10.0% 23.5% 3.9x 22.6x 52.6x 3.8x 15.9x

Wright Medical Group NV WMGI 2,374 22.98 -6.3% -5.0% 90.1% 13.6% (10.4%) 4.1x NM (2.9x) 3.7x 36.1x

Johnson & Johnson JNJ 313,432 115.21 -2.5% 12.2% 91.4% 5.3% 35.3% 4.2x 12.6x 20.2x 4.1x 11.3x



($ in Mil)Price ($)

Quarter

Change

YTD

Change

% of 52

Week High

Est.

Revenue

Growth

EBITDA

Margin

TEV/

Rev

TEV/

EBITDA

Price/

EPS

TEV/

NTM

Revenue

TEV/

NTM

EBITDA

Danaher Corp. DHR 53,842$ 77.84$ -0.7% 10.6% 75.7% (1.8%) 21.6% 2.9x 13.9x 21.4x 3.5x 14.5x

Stryker Corp. SYK 44,863 119.81 2.9% 28.9% 97.0% 12.2% 27.0% 4.5x 16.0x 27.3x 4.0x 14.2x

McKesson Corp. MCK 31,754 140.45 -15.8% -28.8% 70.0% 2.7% 2.2% 0.2x 7.8x 15.9x 0.2x 7.7x

Cardinal Health, Inc. CAH 23,035 71.97 -7.4% -19.4% 79.5% 7.8% 2.3% 0.2x 8.6x 17.4x 0.2x 7.6x

AmerisourceBergen Corp. ABC 17,210 78.19 -3.2% -24.6% 74.4% 10.1% 1.6% 0.1x 9.4x 12.4x 0.1x 8.4x

Henry Schein, Inc. HSIC 12,211 151.71 -6.9% -4.1% 82.9% 7.2% 8.7% 1.2x 14.3x 25.2x 1.2x 13.1x

Patterson Cos., Inc. PDCO 4,017 41.03 -10.7% -9.2% 81.4% 2.1% 7.2% 0.9x 10.1x 19.1x 0.9x 11.4x

Owens & Minor, Inc. OMI 2,171 35.29 1.6% -1.9% 85.1% (2.2%) 2.7% 0.3x 9.3x 19.3x 0.3x 9.2x

PharMerica Corp. PMC 774 25.15 -10.4% -28.1% 70.9% 8.3% 6.2% 0.6x 8.9x 22.7x 0.5x 8.0x

Aceto Corp. ACET 660 21.97 15.7% -18.6% 79.0% 14.9% 10.7% 1.3x 10.7x 21.8x 1.1x 8.9x



($ in Mil)Price ($)

Quarter

Change

YTD

Change

% of 52

Week High

Est.

Revenue

Growth

EBITDA

Margin

TEV/

Rev

TEV/

EBITDA

Price/

EPS

TEV/

NTM

Revenue

TEV/

NTM

EBITDA

Fresenius Medical Care AG & Co. KGaA FMS 26,069$ 42.21$ -3.6% 0.9% 88.8% 8.1% 18.2% 2.0x 10.8x 21.6x 1.8x 9.4x

DaVita, Inc. DVA 12,890 64.20 -2.8% -7.9% 81.5% 5.3% 16.7% 1.5x 8.7x 18.6x 1.4x 8.8x

MEDNAX, Inc. MD 6,242 66.66 0.6% -7.0% 86.6% 14.5% 22.4% 2.6x 11.5x 18.3x 2.2x 10.8x

Envision Healthcare Corp. AMSG 7,434 63.29 -5.6% -16.7% 76.0% 253.2% 24.1% 3.6x 14.7x 19.2x 0.6x 4.6x

HealthSouth Corp. HLS 3,702 41.24 1.7% 18.5% 95.1% 8.8% 22.5% 1.9x 8.5x 17.2x 1.9x 8.7x

Surgical Care Affiliates, Inc. SCAI 1,869 46.27 -5.1% 16.2% 87.6% 21.9% 20.8% 2.9x 12.8x 84.1x 2.4x 15.7x

American Renal Associates Holdings, Inc. ARA 657 21.28 16.5% NM 71.8% 11.7% 22.5% 2.0x 7.8x (23.9x) 1.8x 11.6x

Adeptus Health, Inc. ADPT 125 7.64 -82.3% -86.0% 10.4% (8.6%) (3.9%) 0.9x 9.9x 1.4x 1.0x 4.5x

LHC Group, Inc. LHCG 831 45.70 23.9% 0.9% 97.2% 10.7% 9.9% 1.0x 11.1x 23.3x 0.9x 10.9x

AAC Holdings, Inc. AAC 172 7.24 -58.4% -62.0% 29.7% 14.0% 4.7% 1.3x 18.7x (241.3x) 1.1x 6.8x




($ in Mil)Price ($)

Quarter

Change

YTD

Change

% of 52

Week High

Est.

Revenue

Growth

EBITDA

Margin

TEV/

Rev

TEV/

EBITDA

Price/

EPS

TEV/

NTM

Revenue

TEV/

NTM

EBITDA

Universal Health Services, Inc. UHS 9,541$ 106.38$ -13.7% -11.0% 76.1% 17.2% 15.8% 1.5x 8.3x 15.0x 1.3x 7.8x

HCA Holdings, Inc. HCA 27,734 74.02 -2.1% 9.4% 88.4% 5.4% 18.8% 1.5x 7.4x 11.7x 1.4x 7.1x

Community Health Systems, Inc. CYH 636 5.59 -51.6% -74.4% 20.5% (9.3%) 10.4% 0.9x 8.1x (0.4x) 1.0x 7.8x

LifePoint Health, Inc. LPNT 2,281 56.80 -4.1% -22.6% 75.0% 9.7% 11.8% 0.8x 7.5x 19.3x 0.8x 6.6x

Tenet Healthcare Corp. THC 1,479 14.84 -34.5% -51.0% 43.5% 1.5% 11.1% 0.9x 8.2x (7.0x) 0.9x 7.1x



($ in Mil)Price ($)

Quarter

Change

YTD

Change

% of 52

Week High

Est.

Revenue

Growth

EBITDA

Margin

TEV/

Rev

TEV/

EBITDA

Price/

EPS

TEV/

NTM

Revenue

TEV/

NTM

EBITDA

WellCare Health Plans, Inc. WCG 6,072$ 137.08$ 17.1% 75.3% 96.6% 10.6% NM 0.2x NM 29.0x 0.2x 5.1x

HealthEquity, Inc. HQY 2,406 40.52 7.1% 61.6% 90.0% 30.5% 28.7% 13.4x 43.2x 96.5x 10.4x 29.2x

Team Health Holdings, Inc. TMH 3,235 43.45 33.4% -1.0% 87.8% 17.2% 9.3% 1.4x 14.7x 167.1x 1.2x 10.9x



($ in Mil)Price ($)

Quarter

Change

YTD

Change

% of 52

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Est.

Revenue

Growth

EBITDA

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TEV/

Rev

TEV/

EBITDA

Price/

EPS

TEV/

NTM

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TEV/

NTM

EBITDA

Cerner Corp. CERN 16,082$ 47.37$ -23.3% -21.3% 70.2% 11.2% 31.2% 3.4x 11.0x 25.1x 3.1x 9.1x

Healthcare Services Group, Inc. HCSG 2,843 39.17 -1.0% 12.3% 92.9% 12.4% 7.9% 1.8x 26.0x 43.5x 1.6x 19.0x

HMS Holdings Corp. HMSY 1,537 18.16 -18.1% 47.2% 75.7% 7.3% 20.2% 3.1x 14.6x 44.3x 2.9x 11.7x

The Advisory Board Co. ABCO 1,335 33.25 -25.7% -33.0% 64.9% 8.2% 16.0% 2.3x 12.9x (28.2x) 2.1x 9.1x

Omnicell, Inc. OMCL 1,238 33.90 -11.5% 9.1% 83.7% 21.5% 12.1% 2.2x 18.2x 154.1x 1.8x 11.5x

Evolent Health, Inc. EVH 778 14.80 -39.9% 22.2% 55.1% 96.9% (12.8%) 3.8x NM (3.4x) 1.6x (385.9x)

Providence Service Corp. PRSC 539 38.05 -21.8% -18.9% 68.8% (4.0%) 4.7% 0.5x 15.1x (19.7x) 0.6x 15.0x



($ in Mil)Price ($)

Quarter

Change

YTD

Change

% of 52

Week High

Est.

Revenue

Growth

EBITDA

Margin

TEV/

Rev

TEV/

EBITDA

Price/

EPS

TEV/

NTM

Revenue

TEV/

NTM

EBITDA

CVS Health Corp. CVS 84,153$ 78.91$ -11.3% -19.3% 74.0% 8.4% 7.8% 0.6x 8.5x 17.0x 0.6x 8.5x

Express Scripts Holding Co. ESRX 42,417 68.79 -2.5% -21.3% 78.1% 2.6% 7.7% 0.6x 7.8x 16.3x 0.5x 7.7x

Perrigo Co. Plc PRGO 11,933 83.23 -9.9% -42.5% 54.6% (3.3%) 26.3% 3.1x 12.4x (8.2x) 3.1x 11.1x

Allscripts Healthcare Solutions, Inc. MDRX 1,890 10.21 -22.5% -33.6% 65.6% 16.2% 15.4% 2.4x 14.3x (1021.0x) 2.0x 10.9x

Magellan Health, Inc. MGLN 1,749 75.25 40.1% 22.0% 97.3% 21.9% 5.8% 0.4x 6.5x 26.9x 0.3x 5.3x




($ in Mil)Price ($)

Quarter

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Change

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Est.

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Growth

EBITDA

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TEV/

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EBITDA

National HealthCare Corp. NHC 1,148$ 75.79$ 14.9% 22.8% 95.9% NM 9.3% 1.2x 10.5x 22.3x NM NM

The Ensign Group, Inc. ENSG 1,126 22.21 10.3% -1.9% 93.1% 14.4% 6.6% 0.8x 10.2x 25.7x 0.7x 4.1x

Civitas Solutions, Inc. CIVI 741 19.90 9.0% -30.9% 67.2% 8.1% 8.1% 0.9x 9.3x 79.6x 0.9x 8.0x

Acadia Healthcare Co., Inc. ACHC 2,894 33.10 -33.2% -47.0% 50.2% 13.7% 20.2% 2.5x 12.0x 437.3x 2.2x 10.0x

SunLink Health Systems, Inc. SSY 11 1.21 -2.0% 31.2% 63.4% NM (3.9%) 0.1x NM (0.7x) NM NM

AAC Holdings, Inc. AAC 172 7.24 -58.4% -62.0% 29.7% 14.0% 4.7% 1.3x 18.7x (241.3x) 1.1x 6.8x



healthcare report q4 2016 - sdr ventures...financial buyer inv. date select corporate investments...

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