Insight certainty 4/5 debate potential 2/5

Sweeney: Medical tech companies typically exit at 15 to 20x EBITDA

Jim Sweeney · 641: He Has $25B In Medical Tech Exits, $2B Raised, He's Sitting On PhotoTherapy $1b+ Bet Now with CEO Jim Sweeney · Apr 26, 2017 · at 12:09

Healthcare entrepreneur Jim Sweeney explains the benchmark multiples he uses to determine company valuation by working backward from eventual exit values.

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“And these companies exit values would typically be 15 to 20 times EBITDA.”

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More from Jim Sweeney

Prediction Not checkable as stated
Sweeney: Out-of-pocket costs will force healthcare to treat patients as customers
“The bad news is that people are going to have to start reaching in their pocket to pay for things much more than they ever envisioned in the past. And the good news is as a result of that, they're starting to be viewed for the first time since Medicare was pas…”
Jim Sweeney Apr 26, 2017 ▶ 10:43 641: He Has $25B In Medical Tech Exits, $2B Raised, He's Sitting On PhotoTherapy $1b+ Bet Now with CEO Jim Sweeney
Assertion Supported
Sweeney: Founded healthcare companies have generated over $25B in exit value
“A little north of twenty-five billion.”
Jim Sweeney Apr 26, 2017 ▶ 4:57 641: He Has $25B In Medical Tech Exits, $2B Raised, He's Sitting On PhotoTherapy $1b+ Bet Now with CEO Jim Sweeney
Assertion Supported
Sweeney: Alternative biologic and therapeutic drugs cost up to $100k annually
“Up to a 100,000 dollars a year with biologic and therapeutic drugs that also have horrific side effects.”
Jim Sweeney Apr 26, 2017 ▶ 8:31 641: He Has $25B In Medical Tech Exits, $2B Raised, He's Sitting On PhotoTherapy $1b+ Bet Now with CEO Jim Sweeney
Prediction Open · timeframe Apr 2022
Sweeney: Clarify Medical will exit between $500 million and $1 billion
“Well, I don't do companies that aren't, don't hit a billion, so that's my goal. I'd say, you know, it'll be somewhere between half a billion and a billion on exit value.”
Jim Sweeney Apr 26, 2017 ▶ 14:25 641: He Has $25B In Medical Tech Exits, $2B Raised, He's Sitting On PhotoTherapy $1b+ Bet Now with CEO Jim Sweeney
Opinion
Sweeney: Government intervention in healthcare has been deeply traumatic
“Yes, I wish I knew that the government would have the amount of influence on healthcare that they have today. I didn't foresee that being as traumatic as it's been.”
Jim Sweeney Apr 26, 2017 ▶ 17:12 641: He Has $25B In Medical Tech Exits, $2B Raised, He's Sitting On PhotoTherapy $1b+ Bet Now with CEO Jim Sweeney
Disclosure
Clarify Medical plans online direct-to-patient launch after FDA clearance
“We've developed a device and are seeking FDA clearance in the next few months. That will enable people to self-treat at home. Using a smart app, we're able to surveil what they're doing, prevent them from over-utilizing a device, communicate all of that inform…”
Jim Sweeney Apr 26, 2017 ▶ 3:15 641: He Has $25B In Medical Tech Exits, $2B Raised, He's Sitting On PhotoTherapy $1b+ Bet Now with CEO Jim Sweeney
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