Four Reasons Why Better Private Market Data Matters
Our impression is that most professionals who spend the majority of their time working on healthcare deals understand the value of having a comprehensive database of precedent transactions with fanatically-sourced revenue and EBITDA multiples at their fingertips. For those, who don’t, here’s a few good reasons to consider changing your mind.
1. Establish credibility with clients
Everyone wants to talk EBITDA multiples, whether you want to or not. Scope’s research supports these conversations with real, verifiable market data. Start broad with a general segment like specialty outpatient facilities and narrow to a tiny niche like lithotripsy with the flick of a filter.
2. Quickly create compelling analyses
Have a seller with a successful, but smaller home health agency looking at the nosebleed multiples of the public companies? Have your analyst put together a chart that looks like the one below to kindly explain the difference between their company and a platform. It might take five minutes.
3. Devote more time to deep research
High-level analysis is great, but the real value comes from taking a good long look under the hood. With an enormous list of precedent transactions at their fingertips, your analysts have more precious time to dig into the seller/target as well as the precedent transactions themselves.
4. Learning tool for analysts
Developing instincts for how different assets are priced is an important skill that is normally learned over time, with experience. There's no better way to help your less experienced team members develop those instincts than to equip them with a comprehensive database of reliable market data, that is filterable by both broad market "segment" and the very narrow "type."