Life Sciences Update : Third and Fourth Quarter 2011
Deloitte Financial Advisory Services
This quarter’s Life Sciences Update, produced by Deloitte Financial Advisory Services, summarizes the most recent transactions along with information on the most active buyers, current transaction valuation multiples and an overview of the public market’s perception of the industry.
This quarter’s highlights
European life sciences M&A deal volume increased by 40% in 2011 compared to 2010. Similarly, median multiples of disclosed transactions remained higher than last year. During 2011, the following market evolutions were observed:
- 287 transactions have been announced, compared to 205 transactions for the year 2010;
- 112 private equity backed transactions (either as a buyer or as a seller) have been announced in 2011 which is 33.3% higher than in 2010;
- Average enterprise value per disclosed deal in 2011 is €254m against €424m in 2010. Median enterprise value per disclosed deal in 2011 is €45m against €38m in 2010. This important difference between average and median values indicates that there are quite some outliers present in the dataset. Note that these figures are calculated based on 156 disclosed deals for 2011 and on 116 disclosed deals for 2010;
- Median transaction multiples increased from 13.0x EBITDA ratio in 2010 to 13.7x EBITDA ratio in 2011;
Download the Life Sciences Update below.