ClearView Healthcare Partners, a life sciences-focused consulting business backed by RLH Equity Partners, is preparing for a potential sale, three sources told PE Hub.
Houlihan Lokey has been engaged for sell-side financial advice, two of the people said. It is unclear if the process, expected to launch in Q1, has formally kicked off.
Sources placed EBITDA around the $30 million to $35 million range.
The process is likely to produce a “solid mid-teens EBITDA multiple,” one of the people said. Consistent with that, another source expects that ClearView could attain as high as 14x in a sale – which would mark a high multiple for a consulting business, he said, attributing that to the asset’s tremendous organic growth and a broader outsourced pharma services industry that remains highly sought after by investors.
Newton, Massachusetts-based ClearView is viewed as a sponsor sale, the people said, with the strategic buyer pool seemingly limited.
RLH Equity Partners does not list Clearview within its portfolio and an investment was never publicly announced, however a downloadable fact sheet on the Los Angeles firm’s website identifies ClearView as an investment.
General partner and managing director Rob Radin has also been a member of ClearView’s board of directors since April 2017, his LinkedIn profile shows. RLH invests in the business services, healthcare and government services industries, backing assets with $5 million to $20 million in EBITDA, according to its website.
Founded in Boston in 2007, ClearView can be likened to a McKinsey & Co. or LEK Consulting – but exclusively for the life sciences industry.
ClearView is a global strategy consulting firm serving the life sciences sector. Its teams, operating out of Boston, New York and San Francisco, help pharmaceutical, biotech, medical device, and diagnostics companies worldwide build robust strategies through project-based engagements, its website states.
While ClearView is considered a pure consulting business, the broader pharma commercialization and outsourced services universe has remained particularly hot through the pandemic-lockdown.
While there are no great comps for Clearview, in related activity, Parthenon Capital Partners in March 2018 announced an investment in life sciences strategy consulting firm Trinity Partners.
Elsewhere, GHO Capital-backed Envision Pharma Group in December acquired Two Labs, which helps pharma companies develop and execute customized launch strategies for products, gain access to new business avenues and geographies for its existing services.
Clearview could not be reached on Friday, while RLH and Houlihan Lokey did not return PE Hub’s requests for comment.