Emdeon, a portfolio company of private equity firms Blackstone and Hellman and Friedman, is interviewing investment banks as it plots an initial public offering that could give the company a market cap of between $4.2 billion and $5.4 billion. The Deal’s senior reporter Michael Brown and healthcare reporter Laura Cooper broke the news of the possible IPO on Thursday. The valuation is based on multiples of the company’s projected Ebitda of about $390 million for fiscal 2014. Similar companies in the space are either being acquired or valued by the public markets at between 12 times and 17 times Ebitda. At the high end of the range, that would give Emdeon an enterprise value of around $6.6 billion, and a market cap of about $4.6 billion when its $2 billion of debt is included.
Subscribe to TheStreetTV on YouTube:
For more content from TheStreet visit:
Check out all our videos:
Follow TheStreet on Twitter:
Like TheStreet on Facebook:
Follow TheStreet on LinkedIn:
Follow TheStreet on Google+:
source
