Is FOMO Entering the Private Equity Dynamic?
Orthopedics and podiatry are a highly fragmented market, making for a unique consolidation opportunity for private equity (PE). Growth is easy to measure with a total of eight PE firms that invested in orthopedic group platforms in 2020, and now there are 14 PE-backed orthopedic platforms focused on the musculoskeletal segment.
Earnings before interest, taxes, depreciation and amortization (EBIDTA)
EBIDTA, a common way to measure net profitability of a company, is a tool to value transactions that involve forward projections. A PE deal involves paying now for future income. This deal is expressed in a multiple of EBIDTA: EBIDTA x EBIDTA Multiple = Valuation.
Orthopedic and podiatry multiples differ
The strong demand is creating intense competition among private equity firms, hospitals, and strategic healthcare companies for orthopedic practices, leading to higher valuations. Current ranges for podiatry practices are 4% to 8% and 6% to 14% for orthopedic practices.
Recent Posts
See AllBioAventis has agreed to sell its wound business to LifeNet Health, which includes skin substitutes TheraSkin and TheraGenesis. The transaction includes a total cash consideration of $85 million. Indu
Dr. Ned Amendola MD, FAAOS, FRCS(C) from Duke University was named second vice president of the American Academy of Orthopedic Surgeons (AAOS) and will ascend to president in 2025-2026. Fellowship tra
As speculated in February 2023 FIX, Enovis announced early this week that it has consummated a deal for Novastep with the MIS bunion system being the prize along with access to a robust OUS sales chan
