Deal Brief Healthcare - Covalon Technologies
Deal Highlights
- The acquisition combines Covalon’s rich technology portfolio with AquaGuard’s excellent products and specialized salesforce, who will provide selling capabilities for and access to, the United States healthcare market; the largest healthcare market in the world.
- Covalon researches, develops and commercializes new healthcare technologies that help save lives around the world. AquaGuard is a medical technology business that specializes in infection protection products that protect surgical incisions, IV sites, catheters, PICC lines, and other dressings from water and other moisture while a patient showers.
- Future opportunities for Covalon lie in additional medical device technology companies; providing bolt-on opportunities in the infection control and management, surgical, vascular access and wound care markets.
Market Outlook
- Buyers will continue to look for scalable prospects rich in intellectual property, profitable distribution channels and massive total addressable markets (TAMs).
- Opportunities will also arise as buyers continue to look at scaling their existing platforms, technology, IP, distribution channels and call points, with scalable, profitable and accretive acquisitions.
- Advanced medical device technology companies are a target rich environment that can provide plenty of M&A opportunities on both the buy and sell side.
Valuation Summary
- Total deal value of $12.4 million.
- Potential for contingent consideration of up to $0.9 million.
- Fiscal year-ended December 31, 2017 revenues of $8.5 million.
- Implied total deal value to revenue of between 1.5x and 1.6x.
IMAP Approach
- IMAP has closed 50 transactions in the Healthcare sector since 2015
- IMAP Canada not only provides its clients with access to a greater universe of targets across the globe, it consistently delivers battle-tested valuation advice and deal-making expertise.
- With its considerable experience in advising Advanced Medical Devices Companies, IMAP Canada ensured the acquisition process was smooth and the outcome successful.
- With its expertise in recognizing opportunities in new markets, IMAP continues to invest in relationships with potential targets and buyers.
