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HEALTHCARE & LIFE SCIENCES

INDUSTRY UPDATE │ NOVEMBER 2017


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WHATWE’RE READING

1

CONTENTS

PUBLIC MARKETS OVERVIEW

EQUITY MARKETS OVERVIEW

M&A OVERVIEW

DEBT MARKETS OVERVIEW

HEALTHCARE & LIFE SCIENCESPUBLIC COMPARABLES

M&A TRANSACTIONS

CONTACTSTurner BredrupManaging [email protected]+1 (804) 915-0110

James ClarkManaging [email protected]+1 (804) 915-0119

Andy DixonManaging [email protected]+1 (415) 217-3419

Cheairs PorterManaging [email protected]+1 (804) 915-0130

Geoff SmithManaging [email protected]+1 (804) 915-0195

Paul [email protected]+1 (804) 932-1326

Whit [email protected]+1 (804) 932-1321

Eugene BordVice [email protected]+1 (804) 915-0180

Tyler BradshawVice [email protected]+1 (804) 887-6121

Mervyn HanVice [email protected]+1 (804) 887-6087

Andy HewlettVice [email protected]+1 (415) 217-3427

Ricky NgVice [email protected]+1 (415) 217-3437

Nick OwensVice [email protected]+1 (804) 887-6027

HOME HEALTH | LHC GROUP, ALMOST FAMILY MERGER HIGHLIGHTS INDUSTRYGROWTH

LHC Group and Almost Family agreed to a merger that would create the second-

largest home health provider in the country with 781 locations in 36 states, more than

31,000 employees and revenue of $1.8 billion.

The deal highlights the growing stature of the post-acute and home health space as

many organizations aim to capitalize on population health and payment initiatives

that emphasize reducing unnecessary care, shift care to lower-cost care delivery

settings, improving patient satisfaction and outcomes.

The LHC Group and Almost Family all-stock deal will combine two major players in

that segment of the industry that is expected to grow along with the aging baby-

boom population, longer life expectancies, growing rates of chronic conditions and

the shift to move care from the hospital.

The deal will put the combined entity behind Kindred Healthcare and its $2.5 billion in

annual home health revenue and would produce ~$25 million in cost savings that will

allow them to pursue other partnerships and acquisitions and expand their

geographic footprint and service portfolio, executives said.

"The push to value-based care, which requires care coordination, cost tracking and

outcomes management across the continuum, in many cases requires significant

resources and investment," said Christopher Donovan, partner at Foley & Lardner."Most of the time, this can only be accessed with a large scale and size."

A link to the original article can be found here.



BEHAVIORAL HEALTH | NEW “PSYCHIATRIC ER”

A “psychiatric emergency room” is planned to open in Metro Center Nashville next

year, with the goal of getting people connected to help faster.

There is often a wait in a traditional emergency room for a mental health clinician to

complete a psychiatric evaluation and transfer to an in-patient or community-based

facility. The wait can range from hours to days, according to a white paper by

TeamHealth, and the patient is "boarded" in an ER room.

It's important to get people into treatment faster because the longer they are with a

police officer the more agitated they become and the "higher your odds of doing

something that gets (them) on the wrong side of the law," said Dr. Bill Paul, director of

the Metro Public Health Department. The facility will also cut down on time spent by

police officers who are not trained in behavioral health. A recent study determined

that police spend at least 5,000 hours a year — that's between two and three full-

time police officers — responding to someone in crisis.

The $3.5 million Nashville facility will be open to anyone who walks in, or is dropped

off, and needs help. It will connect to an existing facility and will make it easier for

police to drop someone off and return to work, while acting as a resource for any

other member of the community suffering from a mental health crisis.

Additionally, the new facility will allow the health and police departments to track

whether treatments are working or if people are recurring through the system.

A link to the original article can be found here.

mailto:[email protected]













http://www.modernhealthcare.com/article/20171117/NEWS/171119888/lhc-group-almost-family-merger-highlights-growth-of-post-acute-market

http://www.tennessean.com/story/money/industries/health-care/2017/10/29/mental-health-crises-nashville-grow-prompting-plans-new-psychiatric-er/791208001/

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Physician Practice Management

Assisted Living

Retail Pharmacy

Behavioral Health / Management

Acute-Care Hospitals

Specialty Pharmacy

Medical / Surgical / Dental Supplies & Distribution

Long-Term Care

Emergency Services

Dialysis Services

S&P 500

HW&Co. HCLS Composite Index

Clinical Laboratories

Contract Pharma Manufacturing

Surgicenters / Rehabilitation

Dental Products

Medical Devices and Products

Healthcare Staffing

Life Sciences Tools

Diagnostic Imaging

Durable Medical Equipment

Home Care, Hospice, and Home Infusion

Specialty Managed Care

Contract Research Organizations

HMO - Medical

Disease Management

(50.0%) (40.0%) (30.0%) (20.0%) (10.0%) 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%

PUBLICMARKETS OVERVIEW(1)

2

Key Trading Statistics (detail begins on page 6)

Public Company Sector Performance

(12-month % change in stock price)



Change in Stock Price

3 mos. 12 mos. Revenue EBITDA Revenue EBITDA

Clinical Laboratories 2 $39,431 (8.3%) 18.9% 2.2x 11.2x 2.1x 10.5x

Contract Pharma Manufacturing 2 8,988 (7.4%) 20.3% 3.7x 15.7x 3.4x 13.8x

Contract Research Organizations 6 66,956 15.8% 51.8% 3.5x 17.4x 3.2x 14.6x

Disease Management 1 1,991 16.6% 86.5% 3.7x 15.9x 3.3x 14.5x

Healthcare Staffing 4 18,906 17.5% 28.0% 1.4x 12.3x 1.3x 10.3x

HMO - Medical 8 460,393 10.8% 55.2% 1.0x 12.4x 0.9x 10.1x

Information Serv ices 11 47,142 1.4% 15.7% 4.4x 17.4x 4.0x 12.9x

Specialty Managed Care 3 9,554 9.5% 51.1% 2.1x 14.8x 5.9x 29.0x

Specialty Pharmacy 1 1,569 32.6% (9.1%) 0.4x 18.6x 0.3x 13.9x

Retail Pharmacy 3 183,512 (17.9%) (19.9%) 0.5x 9.6x 0.5x 8.4x

Specialty Pharmacy Management 2 48,114 7.2% 7.0% 0.5x 8.3x 0.5x 7.6x

Dental Products 2 164,839 6.4% 22.7% 4.4x 18.3x 4.2x 15.7x

Durable Medical Equipment 3 20,390 8.3% 45.7% 2.7x 17.2x 2.6x 15.0x

Life Sciences Tools 4 178,034 7.0% 28.1% 4.5x 17.5x 4.2x 14.6x

Medical Devices and Products 13 908,510 5.3% 27.9% 4.5x 18.9x 4.2x 15.0x

Medical / Surgical / Dental Supplies & Distribution 6 104,704 (16.4%) (2.3%) 0.2x 9.2x 0.2x 8.4x

Acute-Care Hospitals 4 99,763 (17.6%) (10.3%) 0.9x 7.9x 1.0x 7.3x

Assisted Liv ing 2 8,176 (16.5%) (23.6%) 2.2x 13.3x 2.1x 11.8x

Diagnostic Imaging 2 10,487 24.7% 43.6% 2.4x 13.3x 2.3x 11.6x

Dialysis Serv ices 3 61,084 (6.2%) 3.6% 1.6x 8.6x 1.4x 9.5x

Home Care, Hospice, and Home Infusion 6 8,870 7.7% 46.9% 1.7x 14.4x 1.6x 12.6x

Long-Term Care 3 6,206 (1.8%) (1.1%) 0.8x 9.1x 0.7x 7.8x

Physician Practice Management 1 5,834 (6.8%) (28.5%) 1.7x 9.7x 1.6x 9.6x

Behavioral Health / Management 5 23,562 4.5% (12.8%) 1.3x 8.8x 1.2x 7.4x

Surgicenters / Rehabilitation 4 17,255 8.0% 22.2% 1.8x 11.0x 1.7x 9.9x

Payor, Provider, & Pharmacy Support Serv ices 43 $886,556 4.3% 33.7% 1.4x 12.4x 1.3x 10.2x

Products & Devices 28 $1,376,476 5.0% 24.4% 4.6x 16.8x 4.3x 14.3x

Provider-Based Serv ices 30 $241,237 (1.7%) 7.6% 1.7x 10.0x 1.6x 9.3x

HW&Co. HCLS Composite Index 101 $2,504,269 3.4% 18.7% 3.3x 14.8x 3.0x 12.5x

S&P 500 4.1% 17.1%

Pro

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Median TEV/

Forward MulitplesSectorNumber of

Companies

Aggregate

Enterprise Value

($ mm)

Median TEV/

LTM Multiples

Pa

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PAGE |

124.7%119.4%

138.3%

40%

60%

80%

100%

120%

140%

160%

180%

Nov-14 Feb-15 May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Nov-17

S&P 500 Dow Jones U.S. Healthcare Index HW&Co. HCLS Index

EQUITYMARKETS OVERVIEW

3

Healthcare & Life Sciences Industry Stock Performance(1)

Top Equity Offerings(2)

(by proceeds)



Closing Date Issuer Ticker Transaction Type Gross Proceeds ($ mm)

10/26/17 National Vision Holdings NASDAQ:EYE Initial Public Offering $347.6

10/13/17 Anaptysbio Inc. NASDAQ:ANAB Follow-On 205.5

10/25/17 Ablynx NV NASDAQ:ABLX Initial Public Offering 199.5

10/02/17 Zogenix, Inc. NASDAQ:ZGNX Follow-On 150.7

10/18/17 Ignyta, Inc. NASDAQ:RXDX Follow-On 124.8

10/05/17 Rhythm Pharmaceuticals NASDAQ:RYTM Initial Public Offering 120.7

10/13/17 OptiNose NASDAQ:OPTN Initial Public Offering 120.0

10/10/17 Flexion Therapeutics NASDAQ:FLXN Follow-On 113.0

10/04/17 Immunogen Inc. NASDAQ:IMGN Follow-On 99.5

10/24/17 Uniqure N.V. NASDAQ:QURE Follow-On 96.4

10/13/17 Protagonist Therapeutics, Inc. NASDAQ:PTGX Follow-On 60.0

10/24/17 Idera Pharmaceuticals NASDAQ:IDRA Follow-On 60.0

10/12/17 OrthoPediatrics NASDAQ:KIDS Initial Public Offering 52.0

10/04/17 NewLink Genetics Corp. NASDAQ:NLNK Follow-On 51.3

10/25/17 Corbus Pharmaceutical Holdings NASDAQ:CRBP Follow-On 32.6

10/12/17 Restoration Robotics NASDAQ:HAIR Initial Public Offering 25.2

10/13/17 BioTime Inc. NYSE:BTX Follow-On 25.0

10/27/17 VBI Vaccines Inc. NASDAQ:VBIV Follow-On 22.8

10/05/17 CareDx, Inc. NASDAQ:CDNA Follow-On 17.4

10/31/17 Pluristem Therapeutics Inc. NASDAQ: PSTI Follow-On 15.0

10/02/17 Ritter Pharmaceuticals NASDAQ:RTTR Follow-On 13.8

10/13/17 Asterias Biotherapeutics NYSE:AST Follow-On 10.4

PAGE |

HC&LS Industry Number of

Segment Companies

Healthcare Facilities 26

Healthcare Serv ices 160

Healthcare Equipment 43

Pharmaceuticals 24

Healthcare Technology 9

Life Sciences Tools & Serv ices 3

Healthcare Supplies 13

Healthcare Distributors 5

Biotechnology 30

Managed Healthcare 8

M&A OVERVIEW(1)

4

Announced Healthcare & Life Sciences M&A

Healthcare & Life Sciences M&A Trends

Announced Private Equity M&A Activity

QUARTERLY M&A ACTIVITY

HEALTHCARE TRANSACTION HIGHLIGHTS

ANNOUNCED HEALTHCARE & LIFE SCIENCES TRANSACTIONS

MEDIAN HEALTHCARE & LIFE SCIENCES TRANSACTION MULTIPLES

PEG INVESTMENTS BY SEGMENT (LAST 3 YEARS) PEG INVESTMENTS AND EXITS

Note: Transactions based on publicly available information

LTM DEAL STATISTICS



$101.6 $108.2

$236.6

$576.0

$277.9

$146.5

0

200

400

600

800

1,000

1,200

1,400

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

$550

$600

2012 2013 2014 2015 2016 2017YTD

Nu

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sAg

gre

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($ in

billio

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Volume Total Deals

10.9x 10.0x

13.6x 14.2x

13.0x 13.1x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

4.0x

4.5x

5.0x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x

2012 2013 2014 2015 2016 2017YTD

EV

/ LTM S

ale

s Mu

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EV

/ L

TM E

BIT

DA

Mu

ltip

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EBITDA Multiple Revenue Multip le

280 291 303 313

368

309 306

250225

182 175152

186

1016

1112

15

18 21

48

49

45 52

34

58

0

50

100

150

200

250

300

350

400

3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

Nu

mb

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f Tra

nsa

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PE Buyer Strategic Buyer

116

77

44

68 67 6661 62

56

163171

93

52 48

78

124

139 143 144

130

41

20

20

40

60

80

100

120

140

160

180

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017YTD

Nu

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Number of Investments Number of Exits

Announced Target Buyer

10/30/2017 South Shore Hand Therapy / Occupational Therapy Thomas H. Lee Partners LP

10/23/2017 Exactech, Inc. TPG Capital LLC

10/23/2017 U.S. HealthWorks, Inc. Concentra, Inc.; Welsh, Carson, Anderson & Stowe; Cressey & Co.

10/18/2017 Clinical Innov ations LLC EQT Partners AB

10/18/2017 Gorman Health Group LLC New Mountain Capital LLC; Conv ey Health Solutions, Inc.

10/16/2017 Autism Home Support Serv ices, Inc. The Jordan Co. LP; The Wicks Group of Cos. LLC

10/16/2017 Medical Center Dermatology, PA ABRY Partners LLC; Dermatology Associates of Tyler

10/11/2017 Ecolab, Inc /Equipment Care Business/ Audax Priv ate Equity

10/11/2017 Summit Healthcare Management LLC FFL Partners LP; Lee Equity Partners LLC

10/10/2017 Carecore National Group LLC Express Scripts Holding Co.

10/6/2017 Women's Care Florida LLC Lindsay Goldberg & Co. LLC

10/5/2017 S&G Properties LLC TSG Consumer Partners LLC

Aggregate Number Median Transaction Multiples

Value ($bn) of Deals TEV/Rev TEV/EBITDA

$169.5 876 2.8x 13.1x

PAGE |

DEBTMARKETS OVERVIEW

Key Credit Statistics(3)

QUARTERLY HEALTHCARE LOAN VOLUME AVERAGE SPREAD ON HEALTHCARE LOANS

Select Healthcare & Life Sciences Debt Offerings(4)

(by deal amount)

CREDIT METRICS AVERAGE SECONDARY SPREAD



$0

$3

$6

$9

$12

$15

$18

$21

$24

2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17

Loa

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Qu

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($ in

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Pro Rata Institutional

L + 0

L + 100

L + 200

L + 300

L + 400

L + 500

2011 2012 2013 2014 2015 2016 1H17

Av

era

ge

Sp

rea

d O

ve

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BO

RRevolving Credit / Term Loan A Weighted-Average Institutional

L + 0

L + 200

L + 400

L + 600

2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17

Av

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Sp

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0.0x

2.0x

4.0x

6.0x

Debt/EBITDA Senior Debt/EBITDA EBITDA/Cash

Interest

EBITDA -

Capex/Cash

Interest

EB

ITD

A M

ultip

le

2011 2012 2013 2014 2015 2016 1H17

5

Date Effective Borrower Name Description Amount ($ mm) Tranche Rating Spread

10/10/17 Cooper Cos Ophthalmic goods $1,100.0 Bridge Loan NR / NR L+ 150

10/24/17 Alliance HealthCare Serv ices Inc Medical laboratories 650.0 Term Loan B3 / B- L+ 1000

10/12/17 Paradigm Acquisition Corp Specialty hospitals not psych'ric 455.0 Term Loan Caa2 / CCC+ L+ 850

10/27/17 Argon Medical Devices Inc Surgical appliances and supplies 435.0 Term Loan Caa2 / B- L+ 800

10/06/17 Quidel Corp Surgical and medical instruments 270.0 Term Loan A NR / NR L+ 350

10/04/17 Covenant Surgical Partners Inc Health and allied serv ices 220.0 Term Loan B B3 / B- L+ 475

10/31/17 Sucampo Pharmaceuticals Inc Pharmaceutical preparations 100.0 Revolver/Line >= 1 Yr. NR / NR L+ 300

10/20/17 Z-Medica Medical and hospital equipment 90.0 Term Loan B NR / NR L+ 550

PAGE |

Stock Price

% Change 52 Week

10/31/2017 3 mos. 12 mos. High Low Revenue EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA Revenue EBITDA

Clinical Laboratories

Laboratory Corporation of America Holdings $153.71 (3.3%) 22.6% $164.22 $119.51 $15,648 $7,218 $409 $22,776 $10,074 $1,965 $1,447 Sep-17 Dec-16 $10,838 $2,154 $1,811 2.3x 11.6x 2.1x 10.6x

Quest Diagnostics Incorporated 93.78 (13.4%) 15.2% 112.97 79.28 12,782 3,764 350 16,655 7,634 1,532 1,272 Sep-17 Dec-16 7,873 1,602 1,336 2.2x 10.9x 2.1x 10.4x

Number of Companies 2 Median: (8.3%) 18.9% Total $28,430 $39,431 $17,708 $18,711 2.2x 11.2x 2.1x 10.5x

Market Cap. Weighted Average: (7.8%) 19.3% 2.2x 11.3x 2.1x 10.5x

Contract Pharma Manufacturing

Cambrex Corporation $43.25 (29.1%) 7.3% $62.95 $38.30 $1,416 $0 $118 $1,331 $530 $175 $145 Sep-17 Dec-16 $563 $169 $141 2.5x 7.6x 2.4x 7.9x

West Pharmaceutical Serv ices, Inc. 101.40 14.3% 33.4% 103.36 73.69 7,504 230 269 7,657 1,567 321 227 Sep-17 Dec-16 1,708 388 281 4.9x 23.8x 4.5x 19.7x


Market Cap. Weighted Average: 7.4% 29.2% 4.5x 21.3x 4.1x 17.8x

Contract Research Organizations

Catalent Inc 42.59 22.7% 86.7% 43.39 21.83 5,617 2,107 615 6,934 2,177 421 271 Sep-17 Jun-17 2,434 552 314 3.2x 16.5x 2.8x 12.6x

Charles River Laboratories International, Inc. 116.29 18.4% 53.3% 118.66 67.20 5,535 1,183 155 6,675 1,846 435 301 Sep-17 Dec-16 1,954 473 393 3.6x 15.4x 3.4x 14.1x

ICON Plc 118.86 13.3% 48.1% 123.53 73.76 6,437 349 292 6,565 1,738 396 335 Sep-17 Dec-16 1,864 435 372 3.8x 16.6x 3.5x 15.1x

INC Research Holdings, Inc. 57.15 3.9% 25.1% 61.10 40.65 5,917 3,058 306 7,733 2,001 266 154 Sep-17 Dec-16 3,168 656 571 3.9x 29.0x 2.4x 11.8x

PRA Health Sciences, Inc. 81.43 9.4% 53.0% 84.38 51.16 5,160 1,350 194 6,526 2,080 317 249 Sep-17 Dec-16 2,250 428 383 3.1x 20.6x 2.9x 15.3x

IQVIA Holdings Inc 108.10 19.4% 50.7% 108.81 70.10 22,843 9,754 1,147 32,524 9,508 1,787 864 Sep-17 Dec-16 8,454 2,167 1,386 3.4x 18.2x 3.8x 15.0x

Number of Companies 6 Median: 15.8% 51.8% Total $51,508 $66,956 $19,351 $20,124 3.5x 17.4x 3.2x 14.6x


Disease Management

Tiv ity Health, Inc. 46.25 16.6% 86.5% 47.90 19.25 1,829 149 171 1,991 543 125 124 Sep-17 Dec-16 606 137 133 3.7x 15.9x 3.3x 14.5x

Number of Companies 1 Median: 16.6% 86.5% Total $1,829 $1,991 $543 $606 3.7x 15.9x 3.3x 14.5x


Emergency Services

Air Methods Corporation(**) $0.00 0.0% 0.0% $43.95 $23.75 $0 $0 $0 $0 $0 $0 $0 Dec-16 Dec-16 NA NA NA #DIV/0! #DIV/0! NA NA

Number of Companies 1 Median: 0.0% 0.0% Total $0 $0 $0 $0 #DIV/0! #DIV/0! #NUM! #NUM!

Market Cap. Weighted Average: #DIV/0! #DIV/0! NM NM NM NM

Healthcare Staffing

AMN Healthcare Serv ices, Inc. $43.90 19.0% 33.8% $46.60 $26.00 $2,105 $320 $20 $2,471 $1,967 $241 $209 Sep-17 Dec-16 $2,101 $270 $231 1.3x 10.3x 1.2x 9.2x

Envision Healthcare Holdings, Inc. 42.60 (24.5%) (28.7%) 74.75 39.66 5,147 6,323 381 12,021 7,207 1,144 869 Sep-17 Dec-16 8,515 1,134 935 1.7x 10.5x 1.4x 10.6x

Cross Country Healthcare, Inc. 13.65 16.1% 22.2% 16.38 10.93 498 95 11 577 868 39 30 Sep-17 Dec-16 960 58 45 0.7x 14.7x 0.6x 9.9x

On Assignment, Inc. 61.22 24.3% 77.9% 61.88 33.93 3,233 610 28 3,837 2,568 272 213 Sep-17 Dec-16 2,765 329 252 1.5x 14.1x 1.4x 11.7x


Market Cap. Weighted Average: 0.0% 17.0% 1.5x 11.7x 10.6x

TEV/ Fwd MultiplesForward Twelve Month

EstimateCompany NameLTM

Period

Latest

FYE Date

TEV/ LTM MultiplesEquity

Mkt.

Value

Total DebtCash and

Equiv.

Total Ent.

Value

(TEV)

Latest Twelve Months

(LTM)

PUBLIC COMPARABLES

6

Payor, Provider, & Pharmacy Support Services(1)



PAGE |

PUBLIC COMPARABLES

7




Stock Price

% Change 52 Week


HMO - Medical

Commercial:

Aetna Inc. $170.03 10.2% 58.4% $184.98 $104.59 $56,399 $10,159 $17,996 $60,916 $61,435 $3,948 $3,888 Sep-17 Dec-16 $61,766 $6,278 $5,661 1.0x 15.4x 1.0x 9.7x

Anthem, Inc. 209.21 12.4% 71.7% 212.07 114.85 53,717 16,231 4,075 65,993 89,123 5,996 5,322 Sep-17 Dec-16 91,281 6,494 5,962 0.7x 11.0x 0.7x 10.2x

Cigna Corporation 197.22 13.6% 66.0% 202.50 115.03 49,656 5,348 3,185 51,722 41,025 4,274 3,880 Sep-17 Dec-16 43,801 5,074 4,392 1.3x 12.1x 1.2x 10.2x

Humana Inc. 255.35 10.4% 48.9% 264.56 165.03 36,479 5,101 3,877 32,354 53,456 3,732 2,388 Sep-17 Dec-16 56,193 4,032 3,633 0.6x 8.7x 0.6x 8.0x

UnitedHealth Group Incorporated 210.22 9.6% 48.7% 212.77 136.22 203,253 29,262 10,430 225,083 196,621 16,963 14,421 Sep-17 Dec-16 215,927 20,214 17,744 1.1x 13.3x 1.0x 11.1x



Government:

Centene Corporation $93.67 17.9% 49.9% $98.72 $50.00 $16,156 $4,721 $4,068 $16,907 $47,487 $2,063 $1,590 Sep-17 Dec-16 $51,201 $2,394 $1,935 0.4x 8.2x 0.3x 7.1x

Molina Healthcare, Inc. 67.83 1.5% 24.7% 72.79 42.56 3,874 2,297 2,819 2,229 19,468 (31) 70 Sep-17 Dec-16 20,608 553 363 0.1x NM 0.1x 4.0x

WellCare Health Plans, Inc. 197.74 11.7% 74.2% 201.37 114.41 8,801 1,182 4,054 5,191 16,180 707 662 Sep-17 Dec-16 18,725 894 799 0.3x 7.3x 0.3x 5.8x



8 10.8% 55.2% Total 428335.51 460392.92 524794.7 559501.26 1.0x 12.4x 0.9x 10.1x

Information Services

Data/Analytics:

Castlight Health, Inc. $3.85 (10.5%) (11.5%) $5.50 $3.05 $311 $6 $87 $428 $124 ($53) ($58) Sep-17 Dec-16 $160 ($13) ($16) 3.4x NM 2.7x NM

Inovalon Holdings, Inc. 16.75 31.9% 23.2% 17.80 8.60 1,083 244 526 2,092 431 79 28 Sep-17 Dec-16 485 123 80 4.9x 26.4x 4.3x 17.1x

National Research Corporation 53.93 6.9% 45.1% 57.21 36.67 976 2 36 1,598 116 39 34 Sep-17 Dec-16 126 43 39 13.8x NM 12.6x NM

Number of Companies 3 Median: 6.9% 23.2% Total $2,370 $1,598 $671 $772 4.9x 26.4x 4.3x 17.1x


eHealth:

Number of Companies Median:

Market Cap. Weighted Average: NM NM NM NM

Hospital/Physician:

Allscripts Healthcare Solutions, Inc. $13.48 9.5% 12.2% $14.45 $9.80 $2,435 $1,416 $109 $4,204 $1,714 $275 $68 Sep-17 Dec-16 $2,081 $409 $301 2.5x 15.3x 2.0x 10.3x

Athenahealth, Inc. 127.88 (7.5%) 23.8% 158.66 90.11 5,118 276 123 5,358 1,179 200 52 Sep-17 Dec-16 1,324 331 194 4.5x 26.8x 4.0x 16.2x

Cerner Corporation 67.52 4.9% 15.3% 73.86 47.01 22,445 535 852 22,557 5,086 1,548 989 Sep-17 Dec-16 5,509 1,811 1,258 4.4x 14.6x 4.1x 12.5x

Computer Programs and Systems, Inc. 30.15 (1.6%) 15.5% 36.15 18.25 415 144 1 548 263 30 17 Sep-17 Dec-16 282 53 29 2.1x 18.1x 1.9x 10.4x

HMS Holdings Corp. 19.24 (4.2%) (8.7%) 21.83 15.94 1,617 240 79 1,810 501 111 54 Sep-17 Dec-16 620 152 84 3.6x 16.4x 2.9x 11.9x

Premier Inc. 32.67 (6.4%) 2.6% 36.50 28.27 1,750 179 132 7,422 1,532 441 327 Sep-17 Jun-17 1,659 558 436 4.8x 16.8x 4.5x 13.3x

Quality Systems, Inc. 14.07 (17.7%) 9.2% 17.74 12.38 896 55 33 916 524 81 43 Sep-17 Mar-17 535 85 38 1.7x 11.3x 1.7x 10.8x

Advisory Board Company(**) 53.93 (4.0%) 35.5% 59.50 24.85 2,198 635 151 2,729 782 105 21 Sep-17 Dec-16 837 208 81 3.5x 26.1x 3.3x 13.1x



Total Ent.

Value

(TEV)


(LTM)LTM

Period

Latest

FYE DateCompany Name

Equity

Mkt.

Value

Total DebtCash and

Equiv.

Forward Twelve Month

EstimateTEV/ LTM Multiples TEV/ Fwd Multiples

** Healthcare consultancy division to be acquired by UnitedHealth and education services division to be acquired by Vista Equity Partners in a two-part split announced July 6th, 2017.

PAGE |

PUBLIC COMPARABLES

8




Stock Price

% Change 52 Week


Specialty Managed Care

Assurant, Inc. $100.65 (4.4%) 25.0% $106.99 $78.50 $5,416 $1,068 $0 $5,563 $6,329 $392 $0 Sep-17 Dec-16 $6,461 NA $635 0.9x 14.2x 0.9x NA

CorVel Corporation 60.00 26.2% 73.7% 61.20 31.00 1,125 0 38 1,100 536 72 51 Sep-17 Mar-17 NA NA NA 2.1x 15.3x NA NA

HealthEquity Inc 50.22 9.5% 51.1% 54.95 30.34 3,038 0 210 2,892 202 62 48 Jul-17 Jan-17 266 100 67 14.3x NM 10.9x 29.0x



Retail Pharmacy

CVS Health Corporation $68.53 (14.3%) (18.5%) $84.89 $68.01 $69,665 $25,789 $2,560 $93,135 $182,351 $12,390 $9,905 Sep-17 Dec-16 $191,230 $12,931 $10,304 0.5x 7.5x 0.5x 7.2x

Walgreens Boots Alliance Inc 66.27 (17.9%) (19.9%) 88.00 63.82 66,903 12,935 3,503 81,712 118,214 7,312 5,658 Aug-17 Aug-17 130,773 9,707 8,144 0.7x 11.2x 0.6x 8.4x

Rite Aid Corporation(*) 1.65 (26.3%) (75.4%) 8.77 1.54 1,756 7,143 239 8,665 32,091 904 343 Sep-17 Mar-17 26,757 723 210 0.3x 9.6x 0.3x 12.0x

Number of Companies 3 Median: (17.9%) (19.9%) Total $138,324 $183,512 $332,656 $348,760 0.5x 9.6x 0.5x 8.4x

Market Cap. Weighted Average: (18.5%) (36.7%) 0.9x 9.5x 0.8x 8.3x

Specialty Pharmacy

Diplomat Pharmacy, Inc. $21.05 32.6% (9.1%) $23.26 $12.25 $1,438 $149 $27 $1,569 $4,475 $84 $22 Sep-17 Dec-16 $5,022 $113 $90 0.4x 18.6x 0.3x 13.9x

Number of Companies 1 Median: 32.6% (9.1%) Total $1,438 $1,569 $4,475 $5,022 0.4x 18.6x 0.3x 13.9x

Market Cap. Weighted Average: 32.6% NM 0.4x 18.6x 0.3x 13.9x

Specialty Pharmacy Management

Express Scripts Holding Company $61.29 (2.2%) (9.1%) $77.50 $55.80 $34,713 $14,908 $3,396 $46,741 $99,605 $7,274 $5,386 Sep-17 Dec-16 $100,948 $7,434 $7,172 0.5x 6.4x 0.5x 6.3x

PharMerica Corporation(**) 29.30 16.5% 23.1% 29.50 19.20 912 460 8 1,372 2,288 135 70 Sep-17 Dec-16 2,555 154 125 0.6x 10.2x 0.5x 8.9x



Total Ent.

Value

(TEV)


(LTM)LTM

Period

Latest

FYE Date


EstimateCompany Name

Equity

Mkt.

Value

Total DebtCash and

Equiv.

TEV/ LTM Multiples TEV/ Fwd Multiples

*40% of Rite Aid’s stores to be acquired by Walgreens in a $4.4 billion transaction announced June 29th, 2017.

**To be acquired by KKR and Walgreens Boots Alliance in deal valued at $1.4 billion, following announcement on August 2nd, 2017.

PAGE |

PUBLIC COMPARABLES

9

Products & Devices(1)



Stock Price

% Change 52 Week


Dental Products

3M Company $230.19 14.4% 39.3% $238.90 $163.85 $137,370 $11,663 $3,417 $149,339 $30,996 $8,746 $7,167 Sep-17 Dec-16 $32,677 $9,542 $8,029 4.8x 17.1x 4.6x 15.7x

DENTSPLY SIRONA, Inc. 61.07 (1.5%) 6.1% 65.68 52.54 14,016 1,622 370 15,500 3,899 795 486 Sep-17 Dec-16 4,140 979 861 4.0x 19.5x 3.7x 15.8x



Durable Medical Equipment

Hill-Rom Holdings, Inc. $80.71 8.3% 45.7% $84.65 $50.50 $5,317 $2,309 $232 $7,511 $2,744 $546 $335 Sep-17 Sep-17 $2,877 $622 $507 2.7x 13.8x 2.6x 12.1x

Invacare Corporation 15.50 (1.0%) 69.4% 16.65 8.90 509 241 157 593 961 (15) (30) Sep-17 Dec-16 973 11 (6) 0.6x NM 0.6x NM

ResMed Inc. 84.18 9.2% 40.8% 87.81 56.59 11,945 1,019 811 12,286 2,125 594 480 Sep-17 Jun-17 2,344 684 562 5.8x 20.7x 5.2x 18.0x



Life Sciences Tools

Agilent Technologies, Inc. $68.03 13.8% 56.1% $68.52 $42.92 $21,894 $2,011 $2,678 $21,515 $4,472 $1,053 $841 Oct-17 Oct-17 $4,733 $1,175 $1,068 4.8x 20.4x 4.5x 18.3x

Becton, Dickinson and Company 208.67 3.6% 24.3% 214.72 161.29 47,486 18,870 14,200 51,326 12,093 3,331 2,243 Sep-17 Sep-17 12,748 4,500 3,522 4.2x 15.4x 4.0x 11.4x

Thermo Fisher Scientific Inc. 193.83 10.4% 31.8% 201.20 139.07 77,572 21,993 756 98,691 19,824 5,043 3,110 Sep-17 Dec-16 22,412 5,821 5,331 5.0x 19.6x 4.4x 17.0x

VWR Corp. 33.10 0.3% 20.3% 37.25 24.42 4,363 2,180 120 6,502 4,640 458 316 Sep-17 Dec-16 4,780 531 405 1.4x 14.2x 1.4x 12.2x



Medical Devices and Products

Abbott Laboratories $54.23 10.3% 38.2% $56.69 $37.38 $94,393 $24,025 $11,199 $108,140 $25,134 $4,756 $2,259 Sep-17 Dec-16 $29,652 $7,713 $6,609 4.3x 22.7x 3.6x 14.0x

Baxter International Inc. 64.47 6.6% 35.5% 65.70 43.13 35,128 3,498 3,517 35,884 10,432 2,091 1,359 Sep-17 Dec-16 10,948 2,623 1,887 3.4x 17.2x 3.3x 13.7x

Boston Scientific Corporation 28.14 5.7% 27.9% 29.93 19.67 38,612 5,682 659 44,253 8,830 2,234 1,397 Sep-17 Dec-16 9,540 2,759 1,906 5.0x 19.8x 4.6x 16.0x

ConforMIS Inc 3.54 (29.3%) (53.6%) 10.16 3.22 160 30 54 129 79 (54) (57) Sep-17 Dec-16 83 (50) (53) 1.6x NM 1.6x NM

C. R. Bard, Inc.(*) 327.07 2.0% 50.9% 330.31 203.63 23,841 1,643 1,301 24,906 3,875 1,218 1,010 Sep-17 Dec-16 4,129 1,377 1,272 6.4x 20.4x 6.0x 18.1x

Danaher Corporation 92.27 13.2% 17.5% 92.47 76.27 64,183 10,909 649 75,371 17,828 4,105 2,880 Sep-17 Dec-16 18,919 4,553 3,307 4.2x 18.4x 4.0x 16.6x

Hologic, Inc. 37.85 (14.4%) 5.1% 46.80 35.15 10,616 3,385 541 13,656 3,059 952 503 Sep-17 Sep-17 3,312 1,093 1,007 4.5x 14.3x 4.1x 12.5x

Johnson & Johnson 139.41 5.0% 20.2% 144.35 109.32 374,176 35,166 16,231 400,598 74,413 25,698 20,870 Oct-17 Jan-17 79,847 29,277 25,537 5.4x 15.6x 5.0x 13.7x

K2M Group Holdings, Inc. 19.69 (19.1%) 15.3% 25.99 16.39 853 74 34 887 252 (7) (34) Sep-17 Dec-16 283 15 (18) 3.5x NM 3.1x NM

Medtronic plc 80.52 (4.1%) (1.8%) 89.72 69.35 109,072 29,072 13,526 125,629 29,639 9,249 6,487 Oct-17 Apr-17 29,794 9,681 8,673 4.2x 13.6x 4.2x 13.0x

Penumbra, Inc. 100.55 23.1% 52.5% 101.15 56.05 3,396 0 219 3,367 311 (1) (4) Sep-17 Dec-16 371 5 3 10.8x NM 9.1x NM

Stryker Corporation 154.87 5.3% 34.3% 160.62 106.48 57,958 7,225 2,689 63,418 12,130 3,252 2,628 Sep-17 Dec-16 13,101 3,720 3,382 5.2x 19.5x 4.8x 17.0x

Teleflex Incorporated 236.98 14.4% 65.6% 248.68 139.15 10,673 2,250 1,018 12,273 2,065 569 433 Oct-17 Dec-16 2,279 723 624 5.9x 21.6x 5.4x 17.0x



Medical / Surgical / Dental Supplies & Distribution

AmerisourceBergen Corporation $76.95 (18.0%) 9.4% $97.85 $68.71 $16,861 $3,794 $2,435 $18,411 $153,144 $2,441 $2,018 Sep-17 Sep-17 $165,963 $2,377 $2,070 0.1x 7.5x 0.1x 7.7x

Cardinal Health, Inc. 61.90 (19.9%) (9.9%) 84.88 60.69 19,512 10,003 1,181 28,535 130,578 3,157 2,384 Sep-17 Jun-17 139,001 3,340 2,890 0.2x 9.0x 0.2x 8.5x

Henry Schein, Inc. 78.60 (13.7%) 5.4% 93.50 73.12 12,428 1,557 80 14,663 12,264 1,033 848 Sep-17 Dec-16 12,923 1,118 924 1.2x 14.2x 1.1x 13.1x

McKesson Corporation 137.88 (14.8%) 8.4% 169.29 126.30 28,744 8,321 2,563 36,355 201,955 4,039 3,125 Sep-17 Mar-17 207,972 4,352 3,750 0.2x 9.0x 0.2x 8.4x

Owens & Minor, Inc. 24.57 (23.8%) (24.3%) 37.02 24.24 1,504 917 98 2,289 9,306 243 188 Sep-17 Dec-16 9,991 285 240 0.2x 9.4x 0.2x 8.0x

Patterson Companies, Inc. 37.00 (11.3%) (13.4%) 49.26 35.93 3,544 1,098 101 4,451 5,532 391 308 Oct-17 Apr-17 5,750 426 375 0.8x 11.4x 0.8x 10.5x



Total Ent.

Value

(TEV)


(LTM)LTM

Period

Latest

FYE Date


EstimateCash and

Equiv.Company Name

Equity

Mkt.

Value

Total DebtTEV/ LTM Multiples TEV/ Fwd Multiples

*To be acquired by Becton Dickinson in deal valued at $24.0 billion, following announcement on August 28th 2017.

PAGE |

PUBLIC COMPARABLES

10

Provider-Based Services(1)



Stock Price

% Change 52 Week


Acute-Care Hospitals

Community Health Systems, Inc. $5.90 (17.5%) 11.7% $10.51 $4.15 $677 $13,941 $590 $14,637 $16,765 $1,797 $871 Sep-17 Dec-16 $14,752 $1,816 $945 0.9x 8.1x 1.0x 8.1x

HCA Healthcare Inc 75.65 (5.8%) (1.1%) 91.03 67.00 26,784 32,953 771 61,874 42,693 8,029 5,945 Sep-17 Dec-16 44,943 8,411 6,210 1.4x 7.7x 1.4x 7.4x

LifePoint Health, Inc. 48.15 (18.9%) (19.5%) 70.95 46.50 1,898 2,904 166 4,873 6,406 749 390 Sep-17 Dec-16 6,484 778 418 0.8x 6.5x 0.8x 6.3x

Tenet Healthcare Corporation 14.28 (17.7%) (27.5%) 22.72 12.25 1,440 14,881 429 18,379 19,061 2,018 1,138 Sep-17 Dec-16 19,195 2,510 1,637 1.0x 9.1x 1.0x 7.3x



Assisted Living

Brookdale Senior Liv ing Inc. $10.03 (29.4%) (30.5%) $16.31 $9.44 $1,868 $5,515 $582 $6,802 $4,790 $690 $200 Sep-17 Dec-16 $4,684 $683 $194 1.4x 9.9x 1.5x 10.0x

Capital Senior Liv ing Corporation 13.30 (3.6%) (16.7%) 17.89 11.60 405 1,004 23 1,374 466 82 14 Sep-17 Dec-16 496 100 22 3.0x 16.7x 2.8x 13.7x



Long-Term Care

Kindred Healthcare, Inc. $6.05 (32.4%) (38.6%) $11.90 $5.50 $526 $3,321 $228 $3,849 $6,524 $421 $298 Sep-17 Dec-16 $6,119 $496 $388 0.6x 9.1x 0.6x 7.8x

National HealthCare Corporation 64.00 (1.8%) (1.1%) 78.99 57.73 972 148 239 883 959 102 60 Sep-17 Dec-16 NA NA NA 0.9x 8.7x NA NA

Ensign Group, Inc. 23.08 3.2% 25.0% 23.81 16.51 1,174 296 49 1,473 1,795 130 88 Sep-17 Dec-16 1,853 187 137 0.8x 11.3x 0.8x 7.9x



Diagnostic Imaging

RadNet, Inc. 10.95 42.2% 57.6% 11.90 5.25 518 618 8 1,139 912 117 50 Sep-17 Dec-16 950 150 63 1.2x 9.7x 1.2x 7.6x

Varian Medical Systems, Inc. 104.19 7.3% 29.7% 108.78 76.94 9,565 350 716 9,349 2,668 556 393 Sep-17 Sep-17 2,782 596 513 3.5x 16.8x 3.4x 15.7x



Dialysis Services

American Renal Associates Holdings, Inc. $12.13 (29.1%) (31.3%) $25.42 $12.08 $379 $559 $68 $1,189 $750 $150 $113 Sep-17 Dec-16 $827 $112 NA 1.6x 7.9x 1.4x 10.6x

DaVita Inc. 60.74 (6.2%) 3.6% 70.16 53.58 11,613 9,099 983 20,799 15,213 2,422 1,640 Sep-17 Dec-16 15,960 2,548 1,733 1.4x 8.6x 1.3x 8.2x

Fresenius Medical Care AG & Co. KGaA 96.71 4.0% 11.9% 100.81 75.71 29,784 8,926 850 39,096 20,812 3,833 2,960 Sep-17 Dec-16 21,926 4,112 3,166 1.9x 10.2x 1.8x 9.5x



Home Care, Hospice, and Home Infusion

Home Care / Hospice:

Addus HomeCare Corporation $36.00 6.0% 42.3% $40.75 $24.40 $418 $44 $46 $417 $417 $33 $27 Sep-17 Dec-16 $448 $40 $32 1.0x 12.5x 0.9x 10.4x

Almost Family, Inc.(*) 44.25 (10.5%) 12.7% 62.95 38.05 618 133 19 767 750 59 53 Sep-17 Dec-16 842 76 68 1.0x 13.0x 0.9x 10.1x

Amedisys, Inc. 48.11 1.6% 11.2% 65.91 34.58 1,629 90 66 1,678 1,496 146 128 Sep-17 Dec-16 1,607 160 137 1.1x 11.5x 1.0x 10.5x

Chemed Corporation 223.43 13.1% 58.0% 233.50 132.92 3,567 83 19 3,790 1,642 247 211 Sep-17 Dec-16 1,714 277 228 2.3x 15.4x 2.2x 13.7x

LHC Group, Inc.(*) 66.81 15.4% 95.0% 73.85 32.04 1,221 119 17 1,376 1,015 94 81 Sep-17 Dec-16 1,117 99 96 1.4x 14.7x 1.2x 13.9x



Home Infusion:

BioScrip, Inc. $2.53 (12.5%) (5.9%) $3.39 $0.98 $323 $479 $38 $843 $875 $38 $9 Sep-17 Dec-16 $766 $63 $33 1.0x 22.4x 1.1x 13.3x

Number of Companies 1 Median: (12.5%) (5.9%) Total $323 $843 $875 $766 1.0x 22.4x 1.1x 13.3x


Total Ent.

Value

(TEV)


(LTM)LTM

Period

Latest

FYE Date


EstimateCompany Name

Equity

Mkt.

Value

Total DebtCash and

Equiv.

TEV/ Fwd MultiplesTEV/ LTM Multiples

*To combine in an all-stock merger and will continue to trade on NASDAQ under the ticker “LHCG”

PAGE |

Stock Price

% Change 52 Week


Physician Practice Management

Specialty:

MEDNAX, Inc. $43.79 (6.8%) (28.5%) $72.13 $40.78 $4,097 $1,826 $59 $5,834 $3,378 $599 $497 Sep-17 Dec-16 $3,602 $609 $500 1.7x 9.7x 1.6x 9.6x



1 (6.8%) (28.5%) $4,097 $5,834 $3,378 $3,602 1.7x 9.7x 1.6x 9.6x

Behavioral Health / Management

AAC Holdings, Inc. $7.92 26.3% (51.7%) $16.72 $5.99 $191 $227 $16 $383 $304 $32 $11 Sep-17 Dec-16 $328 $61 $26 1.3x 12.1x 1.2x 6.3x

Acadia Healthcare Company, Inc. 31.36 (40.8%) (12.8%) 54.34 30.69 2,754 3,269 76 5,946 2,815 574 435 Sep-17 Dec-16 2,980 641 462 2.1x 10.4x 2.0x 9.3x

Civ itas Solutions, Inc. 18.65 4.5% 9.1% 20.98 15.40 697 633 26 1,306 1,456 149 75 Jun-17 Sep-16 1,591 176 86 0.9x 8.8x 0.8x 7.4x

Magellan Health, Inc. 85.30 14.4% 65.8% 88.10 49.50 2,020 765 841 2,024 5,408 271 160 Sep-17 Dec-16 6,919 407 243 0.4x 7.5x 0.3x 5.0x

Universal Health Serv ices, Inc. 102.70 (7.3%) (14.9%) 129.74 99.72 9,002 4,040 65 13,904 10,243 1,692 1,250 Sep-17 Dec-16 11,793 1,777 1,338 1.4x 8.2x 1.2x 7.8x

Number of Companies 5 Median: 4.5% (12.8%) Total $14,664 $23,562 $20,225 $23,611 1.3x 8.8x 1.2x 7.4x


Surgicenters / Rehabilitation

Surgery Centers(*):

Surgery Partners, Inc. $9.25 (53.4%) (42.5%) $24.05 $8.53 $451 $2,293 $204 $2,867 $1,187 $204 $160 Sep-17 Dec-16 $1,745 $263 NA 2.4x 14.0x 1.6x 10.9x

Number of Companies 1 Median: (53.4%) (42.5%) Total $451 $2,867 $1,187 $1,745 2.4x 14.0x 1.6x 10.9x


Rehabilitation:

HealthSouth Corporation $46.14 8.4% 14.9% $49.71 $36.97 $4,556 $2,622 $157 $7,491 $3,844 $825 $644 Sep-17 Dec-16 $4,147 $852 $671 1.9x 9.1x 1.8x 8.8x

Select Medical Holdings Corporation 19.15 18.2% 47.3% 19.78 10.20 2,563 2,809 107 5,899 4,375 492 335 Sep-17 Dec-16 4,694 595 427 1.3x 12.0x 1.3x 9.9x

U.S. Physical Therapy, Inc. 67.95 7.7% 19.4% 78.00 51.96 855 63 17 998 396 62 52 Sep-17 Dec-16 433 64 60 2.5x 16.2x 2.3x 15.6x



Company Name

Equity

Mkt.

Value

Total DebtCash and

Equiv.

Total Ent.

Value

(TEV)


(LTM)LTM

Period

Latest

FYE Date


EstimateTEV/ LTM Multiples TEV/ Fwd Multiples

PUBLIC COMPARABLES

11



Provider-Based Services(1)

* Figures are adjusted for minority interest.

PAGE |

M&A TRANSACTIONS

12

Announced U.S. Healthcare & Life Sciences M&A(1)



Enterprise Enterprise Value / LTM Private Equity

Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement

10/2/2017 Palm Beach Pediatric Urology P.A - MEDNAX, Inc. - - - - No

10/2/2017 Apama Medical, Inc. - Boston Scientific Corp. $300.0 - - - No

10/2/2017 DRT Medical LLC DRT Holdings, Inc. NN, Inc. - - - - No

10/3/2017 ReShape Medical, Inc. - EnteroMedics, Inc. $9.2 - - - No

10/3/2017 Discover Biopharmaceutical Search & Placement - The Tolan Group LLC - - - - No

10/3/2017 The Pat Moore Foundation - D'Amore Health Care, Inc. - - - - No

10/3/2017 Strive Labs, Inc. - WebPT, Inc. - - - - No

10/3/2017 Holden Holdings, Inc. - Cross Insurance, Inc. - - - - No

10/3/2017 Expression Health Analytics LLC - Trilliant Health, Inc. - - - - No

10/4/2017 Crystal Bioscience, Inc. - Ligand Pharmaceuticals, Inc. $35.5 - - - No

10/4/2017 Pursuit Healthcare Advisors LLC - ATOS SE - - - - No

10/4/2017 Conduent, Inc. /Health Care Business/ Conduent, Inc. ATOS SE - - - - No

10/4/2017 Pain Specialists of Austin /Nonclinical Assets/ Pain Specialists of Austin CommonView Capital LLC; Pain

Specialists of America LLC

- - - - Yes

10/4/2017 Little Company of Mary Hospital & Health Care

Centers

- Rush System for Health - - - - No

10/4/2017 ECO Medical Waste Holdings, Inc. - Macau Capital Investments, Inc. - - - - Yes

10/4/2017 Adam Spence Corp. W. L. Gore & Associates, Inc. Vance Street Management LLC - - - - Yes

10/4/2017 Central Texas Pain Center North, PLCC

/Nonclinical Assets/

Central Texas Pain Center North PLCC CommonView Capital LLC; Pain

Specialists of America LLC

- - - - Yes

10/5/2017 Roxwood Medical, Inc. - BTG Plc $80.0 - - - No

10/5/2017 Cooper Design, Inc. - Wipro Digital $8.5 - - - No

10/5/2017 S&G Properties LLC GNC Holdings, Inc. TSG Consumer Partners LLC; S&G

Properties LLC /Private Group/

- - - - Yes

10/5/2017 Albensi Dental Laboratory, Inc. - National Dentex Corp.; Affinity Capital

Management; Welsh, Carson, Anderson

& Stowe

- - - - Yes

10/5/2017 Edgemark Innovation, Inc. - Nutriband, Inc. $0.0 - - - No

10/6/2017 Pharmacogenetics Diagnostic Laboratory LLC - Spencer Trask Ventures, Inc.; Prescient

Medical, Inc.

- - - - Yes

10/6/2017 Elite Medical Scribes LLC - HealthChannels, Inc. - - - - No

10/6/2017 South Palm Ambulatory Surgery Center LLC Envision Healthcare Corp. Baptist Health South Florida, Inc. - - - - No

10/6/2017 Women's Care Florida LLC - Lindsay Goldberg & Co. LLC - - - - Yes

10/9/2017 Saratoga Hair Transplant Center - Williams Center Plastic Surgery

Specialists

- - - - No

10/10/2017 Carecore National Group LLC - Express Scripts Holding Co. $3,600.0 - - - No

10/10/2017 Carena, Inc. - Avizia, Inc.; Healthquest Capital

Management CO. LLC; Northwell

Ventures

- - - - Yes

10/10/2017 Hospira, Inc. /API Manufacturing Facility/ Pfizer Inc. Corden Pharma SpA - - - - No

10/11/2017 Ganeden Biotech, Inc. - Kerry Group Plc - - - - No

10/11/2017 Symbiomix Therapeutics LLC - Lupin Pharmaceuticals, Inc. $150.0 - - - No

10/11/2017 Ecolab, Inc /Equipment Care Business/ Ecolab, Inc. Audax Private Equity; Audax Group LP - - - - Yes

10/11/2017 VHS of I llinois, Inc. Tenet Healthcare Corp. Loyola University Health System - - - - No

10/11/2017 Summit Healthcare Management LLC - FFL Partners LP; Lee Equity Partners LLC;

Summit Healthcare Management LLC

/Private Group/

- - - - Yes

10/12/2017 Telluride Health Co. - Priority Aviation, Inc. - - - - No

10/16/2017 Epicore BioNetworks, Inc. - NEOVIA SAS $23.3 2.0x 7.5x 7.5x No

10/16/2017 Autism Home Support Serv ices, Inc. - The Jordan Co. LP; The Wicks Group of

Cos. LLC; Post Capital Partners LLC; Invo

HealthCare Associates, Inc.

- - - - Yes

10/16/2017 Medical Center Dermatology, PA - ABRY Partners LLC; Dermatology

Associates of Tyler

- - - - Yes

10/16/2017 Lakeway Dermatology & Skin Cancer Center PA - Oliver Street Dermatology Holdings LLC;

ABRY Partners LLC

- - - - Yes

10/16/2017 DxT Medical LLC - Mobile Science Technologies, Inc. $0.5 - - - No

10/16/2017 Onepath Systems LLC - MSouth Equity Partners LLC - - - - Yes

10/17/2017 Amneal Pharmaceuticals LLC Amneal Enterprises LLC Impax Laboratories, Inc. $4,628.4 - - - No

10/17/2017 Evofem, Inc. - Neothetics, Inc. - - - - No

10/18/2017 Clinical Innovations LLC - EQT Partners AB $250.0 - - - Yes

10/18/2017 Synergy Radiology Associates, PA - MEDNAX, Inc. - - - - No

10/18/2017 Stockell Healthcare Systems, Inc. - Medsphere Systems Corp. - - - - No

10/18/2017 Gorman Health Group LLC - New Mountain Capital LLC; Convey

Health Solutions, Inc.

- - - - Yes

10/18/2017 Cleveland HeartLab, Inc. - Quest Diagnostics, Inc. - - - - No

10/20/2017 Revolutionary Medical Devices, Inc. - Vyaire Medical, Inc. - - - - No

10/20/2017 Cirrus Medical Staffing LLC A. Soriano Corp. Webster Capital Ltd. $39.4 - - - Yes

10/23/2017 Exactech, Inc. - TPG Capital LLC; TPG Capital Advisors

LLC

$612.5 2.3x 14.2x 14.2x Yes

10/23/2017 U.S. HealthWorks, Inc. Dignity Health Concentra, Inc.; Welsh, Carson,

Anderson & Stowe; Cressey & Co. LP

$753.0 - - - Yes

10/23/2017 Specialized Medical Serv ices, Inc. - Transition Capital Partners Ltd.; Hospice

Source LLC

- - - - Yes

PAGE |

M&A TRANSACTIONS

13

Announced U.S. Healthcare & Life Sciences M&A(1)



Enterprise Enterprise Value / LTM Private Equity

Announced Target Seller Buyer Value ($mm) Sales EBITDA EBIT Involvement

10/23/2017 Rotation Medical, Inc. - Smith & Nephew Plc $210.0 - - - No

10/23/2017 Crestovo LLC - Finch Therapeutics, Inc. - - - - No

10/23/2017 Rhein Medical, Inc. - Audax Private Equity; Katena Products,

Inc.

- - - - Yes

10/24/2017 America's 1st Choice - Anthem, Inc. - - - - No

10/25/2017 New Beginnings Minnesota LLC - Audax Private Equity; Meridian

Behavioral Health LLC

- - - - Yes

10/25/2017 Mentis Neuro Rehabilitation LLC - Civ itas Solutions, Inc. - - - - No

10/26/2017 Milestone Research Cro, Inc. - Kester Capital LLP; Factory CRO BV - - - - Yes

10/26/2017 Neos Therapeutics, Inc. - PDL BioPharma, Inc. $287.3 - - - No

10/26/2017 CORE Clinical, Inc. - Inv icro LLC - - - - No

10/26/2017 Microbiology & Quality Associates, Inc. - Fidus Investment Advisors LLC;

Thompson Street Capital Managers LLC;

Microbiology Research Associates, Inc.

- - - - Yes

10/26/2017 Health Integrated, Inc. - ExlServ ice Holdings, Inc. - - - - No

10/27/2017 Mergenet Solutions, Inc. /Subsidiaries 2/ Mergenet Solutions, Inc. Salter Labs Corp. - - - - No

10/30/2017 Cardiostaff Corp. - G Medical Innovations USA, Inc. $4.2 - - - No

10/30/2017 California Laboratory Associates - Quest Diagnostics, Inc. - - - - No

10/30/2017 Vaxart, Inc. - Aviragen Therapeutics, Inc. - - - - No

10/30/2017 Workforce Health (South Bend Clinic) Workforce Health U.S. HealthWorks, Inc. - - - - Yes

10/30/2017 Vivere Health LLC - Prelude Fertility, Inc. - - - - No

10/30/2017 Young Innovations, Inc. - The Jordan Co. LP; Young Innovations,

Inc. /Private Group/

- - - - Yes

10/30/2017 Kirin-Amgen, Inc. Kirin Holdings Co., Ltd. Amgen, Inc. $1,620.0 - - - No

10/30/2017 South Shore Hand Therapy / Occupational Therapy

PLLC

- Thomas H. Lee Partners LP; Professional

Orthopedic & Sports Physical Therapy

PC

- - - - Yes

10/31/2017 Clinical Support Serv ices, Inc. McKesson Corp. Medicine-On-Time LLC - - - - No

10/31/2017 Newcourtland Senior Serv ices /Senior Care

Business/

Newcourtland Senior Serv ices Total Community Options, Inc. - - - - No

10/31/2017 Hamburg Counseling Serv ice, Inc. - Community Concern of Western New

York, Inc.

- - - - No

10/31/2017 Xenometrics LLC - CIT SAS - - - - No

10/31/2017 Valley HealthCare Systems, Inc. - TotalMed Staffing, Inc. - - - - No

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Healthcare & Life Sciences

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HARRIS WILLIAMS & CO.

15

SOURCES

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DISCLOSURES



1. FactSet.

2. Company Filings.

3. S&P.

4. PNC Debt Capital Markets.

5. Thomson Financial.

6. Bloomberg.

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