2017全球医疗行业私募股权及公司并购报告（英文版）_45页-3mb

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

Core Content

This report provides an in-depth analysis of the healthcare private equity (PE) and corporate M&A markets in 2016, highlighting key trends, investment strategies and the role of Bain & Company in supporting PE firms and institutional investors.

Main Points

• Market Overview:

  • In 2016, the healthcare PE market saw a surge in deal value, reaching $36.4 billion, the highest since 2007.
  • Despite a decline in overall PE deal value (14%) and deal count (18%), healthcare PE activity increased significantly.
  • The report notes that healthcare is seen as a safe haven during economic uncertainty due to long-term demographic and secular trends.

• Investor Focus:

  • Investors focused on category leaders and healthcare-light assets, such as healthcare IT and contract services, to reduce regulatory exposure and capitalize on growth opportunities.
  • There was a notable increase in public-to-private (P2P) transactions, which accounted for three of the four largest deals of the year.
  • PE funds also explored consortium deals and dual-track exits, where they pursued both IPOs and private sales simultaneously.

• Deal Value and Activity:

  • The total disclosed deal value in the healthcare PE market was $36.4 billion, with TeamHealth and MultiPlan leading the way as two of the largest deals.
  • The weighted average valuation multiple for public healthcare companies in the US dropped to 11 times in 2016, while private companies were valued at 13 times, creating a significant gap that fueled P2P activity.
  • In the US, the top 10 healthcare deals involved nine US-based assets, showing strong domestic focus.

• Sector Trends:

  • Provider and related services remained the most active sector.
  • Healthcare IT (HCIT) saw a significant increase in deal value, reaching $15.5 billion in 2016.
  • Biopharma and related services, medtech and related services, and payer and related services also experienced notable deal activity.

• Geographic Trends:

  • North America, especially the US, was the most active region for healthcare PE deals.
  • Asia-Pacific showed strong growth, with a nearly tripling of deal count in the provider sector.
  • Europe remained active but saw a decline in deal value and activity.

• Corporate M&A Activity:

  • Although the total value of corporate M&A in healthcare fell sharply in 2016, corporate buyers remained active across the healthcare spectrum.
  • Many corporate buyers competed with PE funds for deals, particularly in the US and Europe.

• Investor Strategies:

  • PE investors emphasized efficiency, organic growth, and acquisitions to improve returns.
  • Creative approaches such as forming consortiums, partial exits, and rolling over equity became more common as valuations rose and returns became less predictable.
  • Funds were increasingly looking to healthcare-light companies to mitigate regulatory risk and benefit from long-term trends.

Key Information

• Investor Principles:

  • Focus on category leaders to withstand macroeconomic uncertainty.
  • Embrace efficiency through cost-cutting, carve-outs, and bolt-on acquisitions.
  • Be creative by using consortiums, partial exits, and roll-ups to create value.

• Market Projections:

  • The International Monetary Fund forecasts that global healthcare spending will rise by 6% annually, reaching $10 trillion by 2020.
  • In the US, healthcare spending is expected to exceed $4 trillion by 2020, representing 18% of GDP.

• Challenges:

  • Investors faced high valuations, uncertainty around the Affordable Care Act, and regulatory pressures in the US.
  • The political and regulatory environment in the US created a challenging landscape for deal-making, yet healthcare remained a resilient sector.

• PE Role:

  • Bain & Company serves as a leading consulting partner for PE firms, offering support across the entire investment lifecycle, from deal generation to exit strategy.
  • Their services include due diligence, post-acquisition strategy, value creation, and firm-level strategy.

• Deal Examples:

  • TeamHealth: $6.1 billion deal led by Blackstone Group and others.
  • MultiPlan: $7.5 billion deal involving Hellman & Friedman and others.
  • Press Ganey: $2.4 billion deal by EQT Partners.
  • ExamWorks: $2.2 billion deal by Leonard Green & Partners.
  • Netsmart: $0.95 billion deal involving GI Partners and Allscripts Healthcare Solutions.

• Emerging Trends:

  • Cross-border investments increased, with European buyers acquiring US-based assets.
  • Institutional investors, including sovereign wealth funds and pension funds, became more active in healthcare PE.
  • Chinese investors sought to acquire overseas healthcare companies to bring services back to China.

Conclusion

The 2016 healthcare PE and corporate M&A market was characterized by a surge in deal activity, driven by long-term trends in healthcare demand, regulatory uncertainty, and the search for resilient assets. Despite macroeconomic challenges, healthcare remained a preferred investment sector, with PE firms adapting their strategies to focus on category leaders, efficiency, and creativity. As the global population ages and chronic diseases rise, the demand for healthcare is expected to continue, making it an attractive area for investment in the years ahead.