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Trend Reports

2012 Mid Year

 
 

2012 l 1st Half l Trends Report l Healthcare Industry

Tuesday, July 17, 2012

1ST HALF 2012 KEY HIGHLIGHTS

  • Veritas Capital Partners' acquisition of Thomson Reuters' Healthcare Business, a subsidiary of Thomson Reuters, was the largest transaction for 1st Half 2012, with an acquisition price of $1.25 billion.
  • The most active strategic acquirers were Medical Transcription Billing Corp., T-System Technologies, Ltd., and Sharecare, Inc. with three acquisitions each.
  • The most active financial acquirers in the industry, including acquisitions made by their portfolio companies, were Apax Partners, Thomas H. Lee Partners, L.P., and TPG Capital with three acquisitions each.

1ST HALF 2012 KEY TRENDS

  • Total transaction volume in 1st Half 2012 increased by 28 percent over 2nd Half 2011, from 153 to 196.
  • Total transaction value in 1st Half 2012 decreased by 14 percent over 2nd Half 2011, from $5.92 billion to $5.07 billion.
  • The median revenue multiple remained constant at 2.2x, rising from 1.5x in 1st Half 2011. The median EBITDA multiple fell from 13.7x in 2nd Half 2011 to 12.2x in 1st Half 2012. However, the median value rose significantly over the last six months.

M&A Market Overview

Berkery Noyes tracked 774 transactions between 2010 and 1st Half 2012, of which 228 disclosed financial terms, and calculated the aggregate transaction value to be $23.34 billion. Based on known transaction values, we project values of 546 undisclosed transactions to be $3.48 billion, totaling $26.55 billion worth of transactions tracked over the past two and a half years.

Out of 774 transactions tracked by Berkery Noyes in this report, we found that 190 financially sponsored transactions accounted for 24 percent of the total transactions, yet they totaled $11.20 billion, representing 42 percent of aggregate transaction value during this timeframe.



 

Transaction Volume/Value & Multiples

Transactional Analysis

Strategic vs. Financial Comparison

Purchaser Analysis

Transaction By Volume Segment