M&A Update | Healthcare

Table 4: Healthcare guideline companies

LTM

LTM Margins

EV/ LTM

Closing Price % of 52 Enterprise 3/31/2018 Week High Value

Company Name (Ticker)

Revenue Gross Profit EBITDA Gross Profit

EBITDA Revenue EBITDA

Managed Healthcare

UnitedHealth Group Incorporated (NYSE:UNH)

$214.0 $219.7 $169.0 $167.7 $268.8 $106.9 $193.6

85.3% $231,037 82.0% $72,959 86.9% $60,593 73.9% $43,317 91.6% $38,141 95.1% $19,428

$201,159 $90,049 $60,535 $41,616 $53,767 $45,807 $17,007 $19,445

$47,011 $16,904 $17,812 $5,450 $15,907 $5,685 $13,754 $4,675 $10,271 $3,672 $7,956 $1,830 $2,262 $637 $2,372 $222

23.4% 8.4% 1.1x 19.8% 6.1% 0.8x 26.3% 9.4% 1.0x 33.0% 11.2% 1.0x 19.1% 6.8% 0.7x 17.4% 4.0% 0.4x 13.3% 3.7% 0.3x 12.2% 1.1% 0.2x 19.3% 3.4% 0.2x 18.9% 5.8% 0.6x 19.2% 5.1% 0.6x 5.0% 4.2% 0.5x 31.0% 14.4% 2.7x 40.3% 8.5% 1.4x 36.4% 8.4% 2.0x 32.9% 5.2% 1.0x 25.7% 7.9% 1.3x 33.3% 8.9% 1.7x 32.9% 8.4% 1.4x 29.8% 22.1% 2.0x 25.2% 13.4% 1.5x 30.1% 16.9% 2.0x 41.8% 20.5% 2.3x 22.8% 17.5% 3.2x 21.0% 9.9% 0.9x 21.5% 12.9% 1.4x 22.2% 15.8% 2.9x 32.7% 17.2% 1.5x 40.5% 18.1% 2.8x 11.9% 7.5% 0.9x 51.5% 0.8% 0.0x 34.2% 10.9% 1.3x 36.6% 12.3% 1.2x 37.2% 18.8% 1.6x 35.6% 11.8% 1.0x 34.6% 5.9% 0.9x 19.7% 11.9% 1.3x 31.6% 10.6% 0.8x 40.0% 7.0% 0.7x 33.1% 11.0% 1.0x 35.1% 11.2% 1.0x 8.5% 4.0% 0.5x 38.2% 13.7% 1.7x 26.1% 14.7% 1.8x 24.0% 14.8% 1.9x

13.7x 13.4x 10.7x

Anthem, Inc. (NYSE:ANTM) Aetna Inc. (NYSE:AET) Cigna Corporation (NYSE:CI) Humana Inc. (NYSE:HUM) Centene Corporation (NYSE:CNC)

9.3x

10.4x 10.6x

WellCare Health Plans, Inc. (NYSE:WCG) Molina Healthcare, Inc. (NYSE:MOH) Magellan Health, Inc. (NasdaqGS:MGLN) Triple-S Management Corporation (NYSE:GTS)

87.3% 86.4% 97.3% 88.8%

$5,606 $3,850 $3,198

8.8x

$81.2

17.3x 13.2x

$107.1

$5,839 $2,916

$292 $242

$26.1

$445

$563

$99

4.5x

Average Median

$155.4 $168.4

87.5% $47,857 $53,814 87.1% $28,785 $43,712

$11,820 $3,942 $9,114 $2,751

11.2x 10.6x

Home Health and Hospice

Chemed Corporation (NYSE:CHE) Amedisys, Inc. (NasdaqGS:AMED) LHC Group, Inc. (NasdaqGS:LHCG) BioScrip, Inc. (NasdaqGS:BIOS)

$272.9

95.5% 91.5% 80.9% 72.6% 91.2% 86.3% 91.2%

$4,500 $2,054 $2,126

$1,667 $1,509 $1,063

$516 $240 $608 $128

18.7x 16.0x 23.7x 19.6x 16.7x 18.9x 18.7x 10.9x 12.0x 11.5x 18.1x 10.6x 18.0x 13.4x 12.4x 12.5x 11.7x 8.6x 9.1x

$60.3 $61.6

$387 $269 $107

$90 $43 $33

$2.5

$837 $548

$817 $417

Addus HomeCare Corporation (NasdaqGS:ADUS)

$48.7

Average Median

$89.2 $60.3

$2,013 $2,054

$1,095 $1,063

$377 $107

$387

$90

Non-Acute Care

DaVita Inc. (NYSE:DVA)

$65.9 $38.4 $55.6 $39.2 $17.2 $15.4 $14.4 $81.3 $69.1 $11.5 $40.8 $38.8

81.7% $21,942 60.0% $11,429

$10,884 $7,819 $3,458 $2,836 $1,312 $1,511

$3,244 $2,409 $1,969 $1,047 $1,043 $583 $1,186 $581 $299 $230 $318 $149 $198 $119

Envision Healthcare Corporation (NYSE:EVHC)

MEDNAX, Inc. (NYSE:MD)

81.2% 72.1% 71.3% 77.2% 99.0% 92.9% 92.8% 87.9% 81.6% 81.4% 42.8% 64.3% 89.9% 61.9% 64.7% 63.1%

$6,975 $6,654 $4,160 $1,285 $1,261 $1,173

Acadia Healthcare Company, Inc. (NasdaqGS:ACHC)

Surgery Partners, Inc. (NasdaqGS:SGRY)

Civitas Solutions, Inc. (NYSE:CIVI) RadNet, Inc. (NasdaqGM:RDNT)

$922 $410

U.S. Physical Therapy, Inc. (NYSE:USPH)

$91

$65 $65 $39

The Providence Service Corporation (NasdaqGS:PRSC)

$873 $478

$1,624

$137 $107

AAC Holdings, Inc. (NYSE:AAC)

$281

Average Median

$5,623 $2,723

$3,106 $1,567

$859 $529 $308 $189

Long-Term Care

Brookdale Senior Living Inc. (NYSE:BKD) Capital Senior Living Corporation (NYSE:CSU) The Ensign Group, Inc. (NasdaqGS:ENSG) Five Star Senior Living Inc. (NasdaqCM:FVE)

$6.7

$5,879 $1,320 $1,619

$3,856

$1,261 $662

8.9x

$10.8 $26.3

$465

$189

$84

15.7x 11.6x

$1,849 $1,136 $1,827 $1,493

$220 $139

$1.3

$32

$585

$9

3.5x

Average Median

$11.3

$2,213 $1,470

$564 $224 $402 $112

9.9x

$8.7

10.3x

Acute Care

HCA Healthcare, Inc. (NYSE:HCA)

$97.0 $24.3

90.8% $68,248 96.1% $19,330 37.7% $14,413

$43,614 $19,179 $15,353 $4,364 $6,291 $6,034

$16,239 $8,186 $6,820 $2,259 $5,305 $901 $860 $519 $1,991 $670 $2,411 $421 $5,604 $2,159 $3,858 $785

8.3x 8.6x

Tenet Healthcare Corporation (NYSE:THC) Community Health Systems, Inc. (NYSE:CYH) Select Medical Holdings Corporation (NYSE:SEM)

$4.0

16.0x 10.9x

$17.3 $47.0

87.2% 69.2% 76.9%

$5,670 $4,788 $4,180

LifePoint Health, Inc. (NasdaqGS:LPNT) Kindred Healthcare, Inc. (NYSE:KND)

7.2x 9.9x

$9.2

Average Median

$33.1 $20.8

76.3% $19,438 $15,806 82.1% $10,042 $10,822

10.2x

9.2x

Source: S&P Capital IQ and Baker Tilly Capital research (April 2018)

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