2017全球医疗行业私募股权及公司并购报告（英文版）_42页_2mb

Summary of the 2017 Global Healthcare Private Equity and Corporate M&A Report

Core Content

The 2016 Global Healthcare Private Equity and Corporate M&A Report highlights the resilience of the healthcare sector as a safe haven for private equity (PE) investors amid global economic uncertainty. Despite a decline in overall PE deal value, healthcare PE activity reached a record high of $36.4 billion in disclosed deal value, the highest since 2007. This surge was driven by long-term demographic and secular trends, including an aging population, rising chronic diseases, and increased demand for efficient healthcare services. The report also emphasizes the growing interest in healthcare-light assets, which are less exposed to reimbursement rate fluctuations and regulatory risks.

Main Points

1. Market Overview

• Overall PE deal value declined in 2016 by 14%, but healthcare PE surged to $36.4 billion.
• Healthcare PE deal count increased to 206, up from 199 in 2015.
• Three of the top four deals were public-to-private (P2P) transactions, accounting for nearly 30% of total disclosed deal value.
• P2P deals were fueled by a disparity between public and private valuations, with private investors paying higher premiums for assets in the US.

2. Sector Trends

• Provider and related services remained the most active segment, with strong deal activity in healthcare-light sub-sectors.
• Payer and related services also saw significant interest, especially in areas like healthcare IT (HCIT).
• Biopharma and medtech were active, with a focus on IT and outsourcing services.
• Healthcare IT (HCIT) had the highest deal value in 2016, reaching $15.5 billion, more than four times the previous year’s level.
• CXO (contract research, packaging, and sales organizations) attracted substantial investment due to their potential for consolidation and growth.

3. Deal Structures and Strategies

• Consortium deals made a comeback as investors formed alliances to acquire large assets.
• Dual-track exits were common, where PE firms pursued both IPO and private sale options, often favoring private exits when valuations were more favorable.
• Investors focused on category leaders—companies with strong market positions that could withstand macroeconomic uncertainty.
• Efficiency was a key priority, with PE funds helping targets cut costs, streamline operations, and improve profitability.
• Creativity was essential, with funds using innovative structures like add-on acquisitions and rolling over equity to maximize returns.

4. Geographic Trends

• North America remained the most active region for healthcare PE, with nine of the top 10 deals involving US-based assets.
• Cross-border deals were prominent, with European buyers acquiring US-based healthcare companies.
• Asia-Pacific saw a surge in activity, particularly in the provider sector, with deal count nearly tripling.
• European funds increasingly looked to the US to diversify their portfolios, while Chinese investors sought to bring overseas healthcare services into their domestic market.

5. Corporate M&A Activity

• Corporate M&A deal value in healthcare fell sharply in 2016 due to the lack of megadeals.
• Despite this, corporate buyers remained active, often competing with PE funds for deals.
• Corporate buyers were drawn to healthcare-light assets for their stability and growth potential.

6. Key Principles for Success

• Focus on category leaders to ensure resilience and long-term growth.
• Embrace efficiency to improve margins and competitiveness.
• Be creative in deal structures and strategies to navigate high valuations and uncertain returns.

Key Information

• Top Deals of 2016:

  • TeamHealth: $6.1 billion
  • MultiPlan: $7.5 billion
  • Press Ganey: $2.4 billion
  • ExamWorks: $2.2 billion
  • ERT: $1.8 billion
  • BioClinica: $1.4 billion
  • PCI Pharma Services: $1.0 billion
  • Netsmart: $0.95 billion
  • Epic Health/PSA Healthcare: $0.95 billion
  • Atos Medical: $0.95 billion

• Valuation Trends:

  • Public multiples for US healthcare companies declined to around 11 times LTM EBITDA.
  • Private multiples averaged around 13 times LTM EBITDA, creating a strong incentive for P2P deals.
  • Healthcare-light assets like HCIT, CXOs, and retail health providers were particularly attractive.

• Challenges and Opportunities:

  • Regulatory uncertainty, especially around the Affordable Care Act and Medicaid expansion, affected investor confidence.
  • High valuations and competition for top assets forced investors to be more strategic and creative.
  • Global population aging and rising chronic diseases are expected to continue driving healthcare demand.

Conclusion

The 2016 healthcare PE market was marked by resilience and strategic adaptation in the face of macroeconomic volatility. Investors focused on category leaders and healthcare-light assets to mitigate risks and capitalize on growth opportunities. The surge in P2P deals and cross-border activity reflected the growing appetite for healthcare investments, even amid uncertainty. As the global healthcare market continues to evolve, the principles of focus, efficiency, and creativity will remain critical for PE firms and corporate buyers alike.