M&A Update | Healthcare

Table 5: Historical median trading multiples

Managed Healthcare

Average 11.0x

Average 9.5x

Average 0.5x

EV/EBIT

EV/Revenue

EV/EBITDA

10.0x 12.0x 14.0x 16.0x 18.0x

3.0x

10.0x 12.0x 14.0x 16.0x 18.0x 20.0x

2.5x

2.0x

1.5x

0.0x 2.0x 4.0x 6.0x 8.0x

0.0x 2.0x 4.0x 6.0x 8.0x

1.0x

0.5x

0.0x

2014

2015

2016

2017

LTM

2014

2015

2016

2017

LTM

2014

2015

2016

2017

LTM

Home Health and Hospice

Average 16.3x

Average 13.7x

Average 1.1x

EV/EBIT

EV/Revenue

EV/EBITDA

25.0x

3.0x

10.0x 12.0x 14.0x 16.0x 18.0x 20.0x

2.5x

20.0x

2.0x

15.0x

1.5x

0.0x 2.0x 4.0x 6.0x 8.0x

10.0x

1.0x

5.0x

0.5x

0.0x

0.0x

2014

2015

2016

2017

LTM

2014

2015

2016

2017

LTM

2014

2015

2016

2017

LTM

Non-Acute Care

Average 2.0x

Average 11.6x

Average 17.7x

EV/Revenue

EV/EBITDA

EV/EBIT

3.0x

10.0x 12.0x 14.0x 16.0x 18.0x 20.0x

25.0x

2.5x

20.0x

2.0x

15.0x

1.5x

0.0x 2.0x 4.0x 6.0x 8.0x

10.0x

1.0x

5.0x

0.5x

0.0x

0.0x

2014

2015

2016

2017

LTM

2014

2015

2016

2017

LTM

2014

2015

2016

2017

LTM

Long-Term Care

Average 1.5x

Average 12.4x

Average 33.8x

EV/Revenue

EV/EBITDA

EV/EBIT

3.0x

10.0x 12.0x 14.0x 16.0x 18.0x 20.0x

60.0x

2.5x

50.0x

2.0x

40.0x

1.5x

30.0x

0.0x 2.0x 4.0x 6.0x 8.0x

1.0x

20.0x

0.5x

10.0x

0.0x

0.0x

2014

2015

2016

2017

LTM

2014

2015

2016

2017

LTM

2014

2015

2016

2017

LTM

Acute Care

Average 14.1x

Average 8.3x

Average 1.0x

EV/EBIT

EV/Revenue

EV/EBITDA

10.0x 12.0x 14.0x 16.0x 18.0x

3.0x

10.0x 12.0x 14.0x 16.0x 18.0x

2.5x

2.0x

1.5x

0.0x 2.0x 4.0x 6.0x 8.0x

0.0x 2.0x 4.0x 6.0x 8.0x

1.0x

0.5x

0.0x

2014

2015

2016

2017

LTM

2014

2015

2016

2017

LTM

2014

2015

2016

2017

LTM

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

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