Healthcare Deal Multiples (Select Transactions) - Part I Sample Report

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Healthcare Deal Multiples (Select Transactions) - Part I …

Healthcare Deal Multiples (Select Transactions) - Part I
Number of Pages: 62 Publisher Name: Reevolv Advisory Services Pvt. Ltd
Typically, deal multiples are not available easily for analysis. Information is usually obtained through informal sources. To address these issues, we have calculated deal multiples based on company filings and our research. We hope you find this useful.
The Part I of report enlists the private equity transactions in healthcare industry for the players as mentioned below -
 ASG Eye Hospital  Forus
 Axiss Dental  International Oncology
 Centre for Sight  NationWide Primary Healthcare
 DaVita NephroLife  NephroPlus
 Diwan Chand  Xcyton
The report contains the following details for each transaction
- Player profile: Overview of the investee company, Geographic spread
- Shareholding Pattern: Instrument, Break up of instrument, Percentage holding
- Historical Financials: Profit & Loss Account, Balance Sheet, Key Ratios
- Valuations: Investor, Instruments used, Amount Invested, Percentage stake acquired
- Deal Multiples: EV/Sales, EV/EBITDA, P/E

To order a copy of the report or extracts, please contact Kaustubh Kulkarni / Bhagyashree Mhatre.
Landline: +91 22- 243727346 Email: research@reevolv.in

We also do customized research. So in case there is any specific transaction (irrespective of the sector) you are looking for, please feel free to get in touch with us. The Part II of the healthcare report will be launched shortly.

Thanks & Regards,
Kaustubh Kulkarni

Reevolv Advisory Services Pvt. Ltd.
Address: Shop No 8, Shiv Shakti CHS Ltd,
Agar Bazar, SK Bole Road, Dadar West,
Mumbai- 400028
M: +91 - 98677 42818
L : +91 - 22 - 2437 2746
E : kaustubh@reevolv.in
W :www.reevolv.in

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  • 1. Reevolv Advisory Services Private Limited Healthcare Deal Multiples (Select Transactions) – Part 1 For any queries or detailed information contact us on +91 – 22 – 2436 3161 / +91 – 22 – 24372746 or email at research@reevolv.in December 2013
  • 2. Select Healthcare Transactions - Valuation Report 2 Table of Contents Particulars Page Nos. 1. Executive Summary 3 2. Deal Multiples Summary 4 3. Player Profiles and Deal Multiples 3.1. ASG Eye Hospital 6 3.2. Axiss Dental 11 3.3. Centre for Sight 15 3.4. DaVita NephroLife 23 3.5. Diwan Chand 28 3.6. Forus 35 3.7. International Oncology 40 3.8. NationWide 45 3.9. NephroPlus 50 3.10. Xcyton 55 4. Annexure 60
  • 3. Select Healthcare Transactions - Valuation Report 3 1. Executive Summary
  • 4. Select Healthcare Transactions - Valuation Report 4 2. Deal Multiple Summary Sr. No. Healthcare Name of Investor/s Date Amount Invested (Rs. Mn) Year Pre- Money (Rs.Mn) EV (Rs. Mn) Revenue (Rs. Mn) EBITDA (Rs. Mn) PAT (Rs. Mn) EV/ Sales (x) EV/ EBITDA (x) PE (x) 1 ASG Eye Hospital Sequoia Capita January 15, 2013 FY 2012 FY 2013 2 Axiss Dental India Equity Partners May 23, 2012 FY 2012 FY 2013 June 19, 2013 FY 2012 FY 2013 3 Centre for Sight Matrix Partners October 14, 2010 FY 2010 FY 2011 May 31, 2013 FY 2012 FY 2013 4 DaVita NephroLife New Enterprise Associates June 6, 2011 FY 2011 FY 2012 February 7, 2013 FY 2012 FY 2013 DaVita June 6, 2011 FY 2011 FY 2012 February 7, 2013 FY 2012 FY 2013
  • 5. Select Healthcare Transactions - Valuation Report 5 Sr. No. Healthcare Name of Investor/s Date Amount Invested (Rs. Mn) Year Pre- Money (Rs.Mn) EV (Rs. Mn) Revenue (Rs. Mn) EBITDA (Rs. Mn) PAT (Rs. Mn) EV/ Sales (x) EV/ EBITDA (x) PE (x) 5 Diwan Chand Asian Healthcare Fund March 11, 2010 FY 2009 FY 2010 FY 2011 6 Forus IDG Ventures May 15, 2012 FY 2012 FY 2013 June 5, 2013 FY 2012 FY 2013 Accel India May 15, 2012 FY 2012 FY 2013 June 5, 2013 FY 2012 FY 2013 7 International Oncology Rajasthan Ventures July 4, 2012 FY 2012 FY 2013 8 NationWide Northwest Ventures Partners August 27, 2012 FY 2012 FY 2013 9 NephroPlus Bessemer Venture Partners November 22, 2011 FY 2011 FY 2012 December 14, 2012 FY 2012 FY 2013 10 Xcyton Fidelity India Venture November 25, 2011 FY 2011 FY 2012 ** - Excluding amount invested in secondary stake buyout
  • 6. Select Healthcare Transactions - Valuation Report 6 3. Player Profiles and Deal Multiples 3.1 XXXX 3.1.1. Overview Description Company Name Founder Year of Inception/ Incorporation  Inception –  Incorporation – Brand Name of Investor/s Total no. centres Treatment Services Expansion Plans Source – Company Website and Reevolv Research
  • 7. Select Healthcare Transactions - Valuation Report 7 3.1.2. Location Northern Region No. of Centres Main Cities Eastern Region No. of Centres Main Cities Western Region No. of Centres Main Cities Southern Region No. of Centres Main Cities Source – Company Website and Reevolv Research 3.1.3. Shareholding Pattern as on AGM Equity shares Preference shares Number Paid up Percentage Number Paid up Percentage Directors/ Relatives of Directors Venture Capital Total Source – Company filings
  • 8. Select Healthcare Transactions - Valuation Report 8 3.1.4. Financials Profit & Loss Account for the year ended 31st March(Rs. Mn) FY2009 FY2010 FY2011 FY2012 FY2013 Revenue from Operations Other Income Total Revenues Cost of Material Consumed Administrative and General Expenses Employee Expenses Selling and Distribution Expenses Total Expenditure EBITDA Depreciation EBIT Interest PBT PAT Balance Sheet as at 31st March (Rs. Mn) FY2009 FY2010 FY2011 FY2012 FY2013 Share Capital Reserves & Surplus Shareholders’ funds Secured Loan Unsecured Loan Loan Funds Deferred Tax Liability Total Liabilities Gross Block Net Block Capital work in progress Investments Inventories Debtors Other Current Assets Total Current Assets & Advances Current Liabilities Provisions Total Current Liabilities & Provisions Net Working Capital excl. Cash & Bank Cash & Bank Net Working Capital incl. Cash & Bank Total Assets Source: Company Filings, Totals may not tally due to rounding off errors
  • 9. Select Healthcare Transactions - Valuation Report 9 Key Ratios FY2009 FY2010 FY2011 FY2012 FY2013 Expenditure Ratios Cost of material consumed as a % of total revenues Administrative & Other Expenses as a % of total revenues Employee Expenses as a % of total revenues Selling and Distribution Expenses as a % of total revenues Profitability Ratios EBITDA % EBIT% PBT % PAT % Return Ratios ROCE % ROE % Financial Ratios Total Debt/ Net Worth Secured Debt/ Net Worth Total Debt to EBITDA Turnover Ratios Working Capital Turnover Ratio Net Fixed Assets Turnover Ratio Inventory Days Debtors Days DuPont Analysis EBIT/ Total Income PAT/EBIT PAT/ Total Income Total Assets/ Net Worth Total Income/ Total Assets Source: Company Filings and Reevolv Research
  • 10. Select Healthcare Transactions - Valuation Report 10 3.1.5. Valuation Month & Year Investor Investor Company Name Instrument 1 Instrument 2 Amount invested – Instrument 1 (Rs. Mn) Amount invested – Instrument 2 (Rs. Mn) Total Amount invested (Rs. Mn) Instrument 1 – Equivalent stake (%) Instrument 2 – Equivalent stake (%) Total equivalent stake (%) Primary stake % Secondary stake % Cumulative stake % Source - Company filings and Reevolv Research Month & Year Pre-money (Rs. Mn) Debt Cash and cash equivalents Net Debt EV Post-money (Rs. Mn) Revenues (Rs. Mn) EBITDA (Rs. Mn) PAT (Rs. Mn) ROCE % ROE % EV/ Sales (x) EV/EBITDA (x) PE (x) Source - Company filings and Reevolv Research Note:
  • 11. Select Healthcare Transactions - Valuation Report 11 4. Annexure 4.1. Ratios Key Ratios Cost of Material Consumed % Cost of Material Consumed Total Revenues X 100 Employee Expenses % Employee Expenses Total Revenues X 100 Selling & Distribution Expenses % Selling & Distribution Expenses Total Revenues X 100 Administrative Expenses % Administrative Expenses Total Revenues X 100 EBITDA % EBITDA Total Revenues X 100 EBIT % EBIT Total Revenues X 100 PBT % PBT Total Revenues X 100 PAT % PAT Total Revenues X 100 ROCE % EBIT Capital Employed X 100 ROE % PAT Net Worth X 100 Capital Employed Total of Asset / Liabilities (Liabilities = Shareholders funds + Loan Funds + Deferred Tax + Minority Interest) Working Capital Turnover Ratio Total Revenues Net Current Assets excl Cash Bank Net Fixed Assets Turnover Ratio Total Revenues (Net Fixed Assets excl Capital Work in Progress) Inventory Days Inventory (Cost of Material Consumed) X 365 Debtors Days Debtors Total Revenues X 365
  • 12. Select Healthcare Transactions - Valuation Report 12 4.2. Abbreviations Description CCPS Compulsory Convertible Preference Shares EV Enterprise Value CCD Compulsory Convertible Debentures EBITDA Earnings before interest, tax, depreciation and amortization EBIT Earnings before interest and tax PBT Profit before tax PAT Profit after tax ROCE Return on capital employed ROE Return on equity P/E Price to earnings NA Not Available NM Not Meaningful
  • 13. Select Healthcare Transactions - Valuation Report 13 About Reevolv Reevolv is a boutique consulting and investment banking company offering a "One Stop Shop" in the areas of business strategy, financial advisory and operations consulting to corporates and private equity funds. We service our clients in their constant re-evolution process through our in-depth industry research, domain understanding, our timely and superior execution capabilities and strong network to provide customized solutions to our clients. With a host of implementation focused services spanning across functions, we ensure that our clients reach the desired goals and objectives in most efficient manner. We achieve sustainability of our initiatives by an all round involvement of the client resources. This approach of an integrated improvement helps build a strong foundation for the forward leap of our clients. Reevolv understands and acts upon the Strategic, Financial and Operational needs of the clients on a regular basis to ensure adaptability and flexibility to suit the market and industry dynamics. Founded in 2008, Reevolv is a team of CAs, MBAs and Engineers with functional and industry expertise and diverse background of investment banking and management consulting. Disclaimer This report is published for information only. Reevolv Advisory Services Pvt. Ltd. or any of its affiliates, group companies, directors, employees, agents or representatives shall not be liable for any loss or damages whether direct or indirectthat may arise from or in connection with the use of the information in this document. This document is the sole property of Reevolv Advisory Services Pvt. Ltd.and prior permission is required for full or part reproduction.This information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose. Contact Details For any queries or detailed information contact us on +91 – 22 – 2436 3161 / +91 22- 24372746 or email at research@reevolv.in Address: Shop No 8, Shiv Shakti CHS Ltd, Agar Bazar, S.K. Bole Road, Dadar – West, Mumbai – 400 028 You can also email the research analyst at Shilpa Bhattar shilpa@reevolv.in Kaustubh Kulkarni kaustubh@reevolv.in