Healthcare Deal Multiples (Select Transactions) - Part 2

5/21/2018 Healthcare Deal Multiples (Select Transactions) - Part 2

Reevolv Advisory Services

Private Limited

Healthcare Deal Multiples (Select Transactions)

Part II

For any queries or detailed information

Contact us on +91 22 6002 2001 or

email [email protected]

July 2014
http://c/Users/SONY/Desktop/reevolv/Wellness/Final/[email protected]://c/Users/SONY/Desktop/reevolv/Wellness/Final/[email protected]://c/Users/SONY/Desktop/reevolv/Wellness/Final/[email protected]://c/Users/SONY/Desktop/reevolv/Wellness/Final/[email protected]


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. Beams Hospitals 9

3.2. Enhance Aesthetic 15

3.3. Eye Q 19

3.4. Healthspring 28

3.5. Mewar 36

3.6. My dentist 43

3.7. Nova Medical 50

3.8. Nueclear 64

3.9. R.G. Stone 69

3.10. Suburban Diagnostics 78

3.11. The family doctor 85

4. Annexure 91



3

1. Executive Summary



4

2. Deal Multiples Summary

No.HealthcareCompanies

Name of investor/s DateAmountInvested(Rs. Mn)

YearPre-

Money(Rs. Mn)

EV(Rs. Mn)

Revenue(Rs. Mn)

EBITDA(Rs. Mn)

PAT(Rs. Mn)

EV /Sales (x)

EV /EBITDA

(x)PE (x)

1BeamsHospital

XXX

XXX

XXX

XXX

XXX XXX XXX XXX XXX XXX XXX XXX XXX


XXX

XXX



XXX XXXXXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX XXXXXX XXX XXX XXX XXX XXX XXX XXX XXX


XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX

XXX

XXX

2EnhanceAesthetic

XXX XXX

XXX



3 Eye - Q

XXX

XXX XXXXXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX


XXX

XXX


XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX




XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX



5



YearPre-

Money(Rs. Mn)

EV(Rs. Mn)

Revenue(Rs. Mn)

EBITDA(Rs. Mn)

PAT(Rs. Mn)

EV /Sales (x)

EV /EBITDA

(x)PE (x)

3 Eye - Q XXX



XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

4 Healthspring

XXXXXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX



XXX XXX XXXXXX XXX XXX XXX XXX XXX XXX XXX XXX


XXX





XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

5 Mewar XXX XXX XXX


XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX



6



YearPre-

Money(Rs. Mn)

EV(Rs. Mn)

Revenue(Rs. Mn)

EBITDA(Rs. Mn)

PAT(Rs. Mn)

EV /Sales (x)

EV /EBITDA

(x)PE (x)

6 My Dentist

XXX




XXX XXXXXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

7 Nova Medical XXX







XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX


XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX XXXXXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX






7



YearPre-

Money(Rs. Mn)

EV(Rs. Mn)

Revenue(Rs. Mn)

EBITDA(Rs. Mn)

PAT(Rs. Mn)

EV / Sales(x)

EV /EBITDA

(x)PE (x)

7 Nova Medical

XXX





XXX XXXXXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX


XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX


XXX



XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX



XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX


XXX

XXX XXXXXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX


XXX

XXX




XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

8 Nueclear

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX



XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX



8



YearPre-

Money(Rs. Mn)

EV(Rs. Mn)

Revenue(Rs. Mn)

EBITDA(Rs. Mn)

PAT(Rs. Mn)

EV / Sales(x)

EV /EBITDA

(x)PE (x)

9 R. G. Stone



XXX XXX XXX



XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX


XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

10SuburbanDiagnostics

XXX

XXX

XXX


XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

11The FamilyDoctor

XXX

XXX XXXXXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX


XXX XXXXXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX


XXX

XXX



XXX

XXX


XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX



9

3. Player Profiles and Deal Multiples

3.1. xxx xxx

3.1.1. Overview

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

Description

Company Name

Founder

Year of Inception/

Incorporation

Brand

Name of Investor/s

Total no. of centres

Treatment

Expansion Plans

Source: Company Website and Reevolv Research



10

3.1.3. Shareholding Pattern as on xxxx

Equity Shares Preference Shares *

Number ofShares

Paid up PercentageNumber of

SharesPaid up Percentage

Director /Relatives of Director

Foreign Holding(FIIs/FCs/NRI/OCBs)

Venture Capital

Total

* 16% Compulsorily Convertible Cumulative Preference Shares

Face Value : Equity Share - Rs. xx/- per share, Preference Shares - Rs. xx/- per share

Source : Company Filings

Note : xxxx

3.1.4. Financials

Profit & Loss Account for the year ended 31st March (Rs. Mn)

FY2010 FY2011 FY2012 FY2013

Revenues from Operation

Other Income

Total Revenues

Cost of Materials Consumed

Rent, Rates and Taxes

Administrative and General Expenses

Employee Expenses

Selling and Distribution Expenses

Other Expenses

Total Expenditure

EBITDA

Depreciation

EBIT

Interest

PBT

PAT



11

Balance Sheet as at 31st March (Rs. Mn)

FY2010 FY2011 FY2012 FY2013

Share Capital

Share Application Money

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

Sundry 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



12

Key Ratios FY2010 FY2011 FY2012 FY2013

Profitability Ratios

EBITDA %

EBIT%

PBT %

PAT %

Return Ratios

ROCE %

ROE %

Financial Ratios

Total Debt / Net Worth

Secured Debt / Net Worth

Total Debt / EBITDA

Turnover Ratios

Working Capital Turnover Ratio

Net Fixed Assets Turnover Ratio

Inventory Days

Debtors Days

Source: Company Filings and Reevolv Research



13

3.1.5. Valuation

Month & Year

Investor

Investor Company Name

Instrument 1

Instrument 2

Amount investedInstrument 1 (Rs. Mn)

Amount investedInstrument 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

Note

xxxx

xxxxxx



14

XXXX

Month & Year

(Rs. Mn)

Pre-money

Debt

Cash and cash equivalents

Net Debt

EV

Post-money

Revenues

EBITDA

PAT

ROCE %

ROE %

EV/ Sales (x)

EV/EBITDA (x)

PE (x)

Source : Company Filings and Reevolv Research

Note :

XXXXX

XXXXXX

XXXXXXX



15

4. Annexure

4.1. Ratio

Key Ratios

Cost of Material Consumed %Cost of Material Consumed

Total RevenuesX 100

Employee Expenses %Employee Expenses

Total RevenuesX 100

Selling & Distribution Expenses %Selling & Distribution Expenses

Total RevenuesX 100

Administrative Expenses %Administrative Expenses

Total RevenuesX 100

EBITDA %

EBITDA

Total Revenues X 100

EBIT %EBIT

Total RevenuesX 100

PBT %PBT

Total RevenuesX 100

PAT %PAT

Total RevenuesX 100

ROCE %EBIT

Capital EmployedX 100

ROE %

PAT

Net Worth X 100

Capital EmployedTotal of Asset / Liabilities

(Liabilities = Shareholders funds + Loan Funds + Deferred Tax + Minority Interest)

Working Capital Turnover RatioTotal Revenues

Net Current Assets excl Cash Bank

Net Fixed Assets Turnover Ratio

Total Revenues

(Net Fixed Assets excl Capital Work in Progress)

Inventory DaysInventory

(Cost of Material Consumed)X 365

Debtors DaysDebtors

Total RevenuesX 365



16

4.2. Abbreviations

Description

CCD Compulsory Convertible Debentures

CCPS Compulsory Convertible Preference SharesCY Calendar Year

EBIT Earnings before interest and tax

EBITDA Earnings before interest, tax, depreciation and amortisation

EV Enterprise Value

FY Financial Year

NA Not Available

NM Not Meaningful

NR Not Relevant

P/E Price to earnings

PAT Profit after tax

PBT Profit before tax

ROCE Return on capital employed

ROE Return on equity



17

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.

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Contact Details

For any queries or detailed information contact us on

+91 22- 6002 2001 or email [email protected]

Address: No. B/002,Vision Court Staney Fernandes Wadi CHS Ltd., Plot no. 746, MTNL Exchange Lane,

Dadar (West), Mumbai 400 028

You can also email the research analyst at

Shilpa Bhattar

[email protected]

Kaustubh Kulkarni

[email protected]
http://c/Users/SONY/Desktop/reevolv/Wellness/Final/[email protected]://c/Users/SONY/Desktop/reevolv/Wellness/Final/[email protected]://c/Users/SONY/Desktop/reevolv/Wellness/Final/[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://c/Users/SONY/Desktop/reevolv/Wellness/Final/[email protected]

Healthcare Deal Multiples (Select Transactions) - Part 2

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Transcript of Healthcare Deal Multiples (Select Transactions) - Part 2