Dynamic Healthcare M&A Database

Acquiring Party	Foot Levelers, a manufacturer of custom-made orthotics addressing primarily chiropractors.
Transferring Party	FootMaxx Holdings Inc. (FMX:TSXV), a Canada-based maker of custom and non-custom foot orthotics, with operations in the U.S. too.
Sector	Medical Devices
Date	November 1, 2007
Analysis Combines FootMaxx’s foot diagnostic systems with Foot Levelers’ coverage of the chiropractic market, where FL is considered the leading foot orthotic maker. With a field sales force, Footmaxx also addresses orthopedic surgeons, physiotherapists, sports medicine specialists, physiatrists, podiatrists, chiropodists, orthotists, pedorthists, as well as rehab and diabetes centers. FootMaxx was losing money due to a heavy debt load and softening sales. Deal value -- $16.34m, on sales of $13.53m (1.2x) and EBIDA of - $1.6 (10.2x). A reported $16.8m of obligations were assumed, the funded debt of which would add to the Deal value and make the multiples significantly higher.
The Walden Group is a leading healthcare investment banking firm specializing in mergers, acquisitions and strategic transactions. It also invests its own funds and, together with its expert operational partners, provides value-added services to help special companies reach critical milestones. This information is copyright © 2004-2007 The Walden Group, Inc. This information is provided as a service to the public but remains the intellectual property of The Walden Group, Inc and may not be reproduced in any manner without the written permission of The Walden Group, Inc. The information contained in the transactions table was derived from publicly available and other sources. Transaction analysis and other information are based, in part, upon public comments, Walden Group research and judgments, and reporting and research of others. The information is not intended to be relied upon as pronouncements by the transaction participants or for any other reason.

Dynamic Healthcare M&A Database - 4Q07