Q3 2017 Healthcare Industry Trends

Q3 2017 KEY HIGHLIGHTS

• The largest transaction in Q3 2017 was KKR’s Internet Brands’ announced acquisition of WebMD Corporation, an online health information provider, for $2.8 billion.
• The most active acquirer through the 1st 3 Quarters of 2017, either directly or through an affiliated business, was Arsenal Capital Partners with six transactions. Three of these deals occurred in Q3 2017: Patient Genesis’ ConsentNow eConsent technology, FDAnews, and MedApproved.

Q3 2017 KEY TRENDS

• Total transaction volume in the Q3 2017 saw a slight uptick over Q2 2017, from 103 to 107.
• Total transaction value in Q3 2017 declined by 51 percent over Q2 2017, from $14.9 billion to $7.3 billion. Total value in Q2 2017 increased more than fivefold, which was the peak for value during the past seven quarters.

MULTIPLES & VALUE TRENDS

• The median revenue multiple from 2016 through the 1st 3 Quarters of 2017 remained constant at 2.1x. The median EBITDA multiple experienced a minor shift from 12.5x to 13.2x.

TOP TEN DEALS THROUGH Q3 2017

The top ten deals by value have seen five new additions since our half year report, two of which were Pharma related: PRA Health Sciences’ announced acquisition of Symphony Health Solutions for $530 million and Evotec BioSystems’ acquisition of Aptuit for $300 million.

These five transactions, with an aggregate value of $4.9 billion, represented 20 percent of transaction value in the 1st 3 Quarters of 2017 and 33 percent of Q3 2017 transaction value.