Dental Products Market Analysis – August 2014

Geographic expansion and advanced technology help drive acquisitions in the dental products market.

The dental products market is expected to grow at an annualized rate of around 7%, reaching $27.6 billion by 2015. The market for dental implants and dental biomaterials is expected to grow at 6% and 10.5% respectively from 2010 – 2015.¹

Revenue multiples are currently tracking at a median of 1.9x, while EBITDA multiples have a median of 13.9x. Since 2012, these have seen 73% and 31% increases, respectively.

Since the acquisition of Astra Tech by DENTSPLY in August 2011 and the acquisition of BioHorizons by Henry Schein in December 2013, there has been further consolidation among the top players in the market. In April 2014 Zimmer announced an agreement to acquire Biomet for $13.4 billion. Two months later, Nobel Biocare, the world’s second-biggest maker of dental implants, announced a possible sale of the company.

Pharma Business Services Market Analysis – July 2014

As the pharmaceutical market undergoes changes, pharma business services companies continue to expand the breadth and depth of their service offerings.

Revenue multiples in the public markets are currently tracking at a median of 0.7x, while EBITDA multiples have a median of 10.7x. Since the end of 2012, EBITDA multiples have remained flat and revenue multiples have increased by 21%.

Transaction multiples are tracking in a similar range, with median revenue multiples of 1.6x and median EBITDA multiples of 8.1x over the past two years.

The pharma business services index largely tracks the broader S&P index. Unlike many other healthcare companies that are more immune to economic downturns, early stage biotech and pharma companies that rely heavily on R&D funding were hit especially hard during the financial crisis in 2009. However, recent increase in demand for outsourced pharma services has renewed industry growth. As such, since late 2012, the pharma businesses service index has consistently performed above the S&P 500. In the last 12 months, the pharma business services index reached a 10-year high.

Medical Reprocessing Market Analysis – July 2014

Medical reprocessing market sees renewed growth as healthcare providers face pressures to manage costs and increase sustainability.

The global medical sterilization, repair, and refurbishment industry is expected to reach roughly $13 billion by 2017.¹

Since early 2014, the medical reprocessing index has seen renewed growth and has performed above the S&P 500.

Revenue multiples in the public markets are currently tracking at a median of 2.2x, while EBITDA multiples have a median of 8.4x. Since 2013, these have seen moderated growth rates of 10% and 14%, respectively. In 2013, revenue multiples increased from 1.6x in 2012 to reach a five-year high of 2.0x, while EBIDTA multiples have remained largely flat compared to 2012.

Healthcare Staffing Market Analysis – February 2014

Industry leaders continue robust M&A activity

The $14 billion U.S. healthcare staffing and physician outsourcing industry is expected to continue growing due to increased demand for outsourced recruitment services and the need to cut healthcare expenditures. M&A activity in this industry has continued to grow as the economic recovery progresses.

Revenue multiples in the public markets are currently tracking at a median of 0.8x, while EBITDA multiples have a median of 11.5x. Since the end of 2012, these have grown 60% and 13% respectively.

Transaction multiples are tracking in a slightly lower range, with median revenue multiples of 0.6x and median EBITDA multiples of 9.0x over the past two years. Lower multiples in 2011 and 2012 partially attributed to the difference. While the market underperformed the S&P index from late 2011 to mid 2012, recent regulatory pressures for hospitals to cut costs have renewed industry growth, which has been reflected in public market valuations.

CRO Market Analysis – December 2013

The CRO market favors a full service model and strategic partnerships

The U.S. CRO industry is currently valued at $15.1 billion and is expected to grow at an annualized rate of 11.0% to $25.5 billion during the five years to 2018.¹ Revenue multiples are currently tracking at a median of 1.6x, while EBITDA multiples have a median of 12.8x. Since 2011, these have seen compound annual growth rates of 28% and 29%, respectively. Transaction multiples are tracking in a similar range, with median revenue multiples of 2.3x and median EBITDA multiples of 10.5x over the past 2 years.

Recent M&A activity in the CRO industry illustrate a trend towards a full service model. Top players have been acquiring small niche CROs to expand service offerings and form strategic partnerships with large pharmaceutical companies.

For example, in April 2013, PAREXEL International, a leading global CRO, acquired Heron Group, a life sciences consultancy firm for $24 million. PAREXEL announced shortly after that its acquisition of Heron Group will further its ability to offer their clients a full spectrum of services that aid in product development. Similarly, Eurofins Scientific, a world leader in bio analytical support, has been actively seeking service expansion. In September 2012, Eurofins acquired Pan Labs’ pharmacology unit to leverage its discovery capabilities and build a significant spectrum of new services that can be offered to clients.

Dental Products Market Analysis – October 2013

Geographic expansion and advanced technology help drive acquisitions in the dental products market.

The dental products market is expected to grow at an annualized rate of around 7%, reaching $27.6 billion by 2015.¹

Revenue multiples are currently tracking at a median of 1.7x, while EBITDA multiples have a median of 12.8x. Since 2011, these have seen 55% and 21% increases, respectively. Transaction multiples are tracking in a slightly higher range, with median revenue multiples of 3.2x and median EBITDA multiples of 13.7x over the past two and a half years.

One major trend in the industry is that companies are using acquisitions as a means to expand their geographical reach. Companies aim to reinforce their position in existing markets as well as accelerate their international expansion and access emerging markets.

Medical Reprocessing Market Analysis – September 2013

Medical reprocessing market sees renewed growth as healthcare providers face pressures to manage costs and increase sustainability.

The global medical sterilization, repair, and refurbishment industry is expected to reach roughly $13 billion by 2017.¹

Revenue multiples in the public markets are currently tracking at a median of 2.1x, while EBITDA multiples have a median of 9.5x. Since the end of 2012, these have grown 31% and 48% respectively.

Transaction multiples are tracking in a similar range, with median revenue multiples of 1.6x and median EBITDA multiples of 8.1x over the past two years. The slight dip in multiples in 2011 and 2012 contributed to a lower median. While the market underperformed the S&P index in 2011 and 2012, recent regulatory pressures for hospitals to cut costs have renewed industry growth.

Healthcare Insurance Services Market Analysis – July 2013

The healthcare insurance services market has been undergoing diversification, innovation and consolidation.

The insurance services industry is highly fragmented, with several small-scale players alongside large outsourcing firms that dominate the market. However, market forces have been driven by continually rising healthcare costs, regulatory changes to the health insurance industry, and, subsequently, a more consumer-driven health insurance business model. These trends have forced market players to diversify, innovate, and consolidate in order to remain competitive now and in the future.

Insurance services companies are seeking to diversify their product portfolio in order to offer health insurance companies a comprehensive, end-to-end solution. TriZetto, an insurance services industry leader, has made seven acquisitions between 2011 and 2013 in a variety of areas such as payer-provider connectivity, business process outsourcing, compliance readiness and claims management.