Healthcare trends and perspective [PDF]

Maturing and diversified business models. ➢ High free cash flow ... Preference for a SaaS or web-based delivery model.

22 downloads 25 Views 2MB Size

Recommend Stories


Healthcare trends bring uncertainties
Happiness doesn't result from what we get, but from what we give. Ben Carson

Trends in Healthcare Investments and Exits 2018
Life isn't about getting and having, it's about giving and being. Kevin Kruse

Trends in Healthcare Investments and Exits 2018
So many books, so little time. Frank Zappa

trends commercial consumer digital marketing healthcare
Open your mouth only if what you are going to say is more beautiful than the silience. BUDDHA

Healthcare management and the decision-making process perspective
Courage doesn't always roar. Sometimes courage is the quiet voice at the end of the day saying, "I will

Healthcare BPO market Share, Growth, Trends, and Forecasts (2016–2021)
Sorrow prepares you for joy. It violently sweeps everything out of your house, so that new joy can find

Healthcare BPO market Share, Growth, Trends, and Forecasts (2016–2021)
Your task is not to seek for love, but merely to seek and find all the barriers within yourself that

PDF Download Healthcare Kaizen
No matter how you feel: Get Up, Dress Up, Show Up, and Never Give Up! Anonymous

[PDF] Download Healthcare Simulation
Why complain about yesterday, when you can make a better tomorrow by making the most of today? Anon

Idea Transcript


Healthcare trends and perspective February 2016

Driving Strategic Innovation Enhance Integrate

Page 2



Integrated approach with a long-term focus



Objective source of analysis and advice



Deep industry knowledge leveraged into our deal strategies



Global presence and regional market subject matter resources provide in-depth knowledge of local market dynamics and players



Intellectual capital and dedicated resources to support our clients

Identify Evaluate

© 2014 Ernst & Young LLP. All Rights Reserved. 1404-1244361.

Healthcare IT investment considerations 

Strong tailwinds

 



Risk

 

Active M&A environment

Capital markets

Page 3

Government incentive schemes are driving expenditure on software/services Accountable care models continue driving need for better analytics Attracting significant investment from strategic, non-traditional market players, venture capital and private equity

Potential unproven or changing technologies Possibility of inflated valuation of companies with untested technologies Rapidly changing technology environment



Activity driven by new reimbursement models demanding greater data connectivity, improved exchange of information and need for better health analytics



Sectors favored by debt and equity investors due to:  Strong growth profile supported by macroeconomic trends  Maturing and diversified business models  High free cash flow conversion  Unique growth and margin profile

Digital Health Bootcamp – 2016

Healthcare IT M&A activity has continued its strong pace over the past three years Number of Healthcare IT transactions

Key M&A drivers  





Consolidation is changing the competitive landscape Vendors are responding with both reactive and proactive acquisitions 65% of 2015 HCIT acquisitions were by strategic buyers Investors were actively seeking add-ons to address concerns involving  Electronic record integration,  Meaningful use and  Revenue cycle management

80 62

60 41

40

31 19

20 0

H1 '13

H2 '13

H1 '14

H2 '14

     

Pamplona Capital’s acquisition of MedAssets ($2.7B) IBM’s acquisition of Merge Healthcare ($1B) Cardinal Health’s acquisition of NaviHealth ($290M) Premier’s acquisition of CECity ($400M) Emdeon’s acquisition of Altegra Health ($910M) ABRY Partner’s acquisition of Sentry Data Systems ($200M)

20.0x 15.0x

13.8x 10.2x

5.0x

3.8x

3.8x

3.4x 4.0x

3.4x 4.0x

1.9x

4.0x

0.0x H1 '13

H2 '13

H1 '14 EV/Revenue

H2 '14 EV/EBITDA

H1 '15

H2 '15

Median M&A Valuation – Enterprise Value $290

$300 $200 $100

$65 H1 '13

Digital Health Bootcamp – 2016

H2 '15

18.2x

16.8x

$50

$-

Page 4

H1 '15

Median M&A Valuation Multiples

10.0x

Notable M&A transactions (2015)

55

44

H2 '13

$17 H1 '14

$42

$42

H2 '14

H1 '15

H2 '15

Healthcare IT capital raising activity level has been strong

Key criteria for institutional investors

Notable private placements (2015)

Financial Metrics:  Strong recurring revenue model  Focus on companies that are beyond proof-ofconcept  The universe of early stage investors has been contracting, but has not completely disappeared  Revenue near or in excess of $25 million and profitability or visibility to profitability  Healthcare IT companies that meet the private equity profile is growing



Operational Metrics:  Strong ROI case for its customers  Preference for a SaaS or web-based delivery model  Scalable business model  Capitalizes on a post-healthcare reform environment

Page 5

Digital Health Bootcamp – 2016

   

Nanthealth ($360M) Allscripts Healthcare Solutions ($100M) Modernizing Medicine ($38M) Health Catalyst ($70M) Doctor on Demand ($63M)

Median M&A Valuation – Enterprise Value 25

15 10

22

20

20

9

9

H1 '13

H2 '13

18 11

5 0 H1 '14

H2 '14

H1 '15

H2 '15

Initial public offering (IPO) Three notable IPOs in 2015

2015 Notable Initial Public Offerings   

$600 million IPO of Inovalon Holdings in February 2015 $225 million IPO of Evolent Health in June 2015 $180 million IPO of Teladoc, Inc. in June 2015

2015 Follow-On Equity Offerings  

$1.6 billion follow-on for IMS Health in May 2015 $232 million follow-on for The Advisory Board Company in January 2015

2016 Expected & Rumored Initial Public Offerings ►

ABILITY Network



Physicians Interactive, Inc.



Accolade, Inc.



American Well



Practice Fusion, Inc.



Augmenix, Inc.



Tabula Rasa HealthCare



CareCloud Corporation



Truven Analytics, Inc.



MedeAnalytics, Inc.



ZocDoc, Inc.

Page 6

Digital Health Bootcamp – 2016

Smile Life

When life gives you a hundred reasons to cry, show life that you have a thousand reasons to smile

Get in touch

© Copyright 2015 - 2024 PDFFOX.COM - All rights reserved.