Ten Questions Lawyers and Clients Ask About FMV Valuations

Nearly every health care business transaction must be based on some measure of fair market value (FMV). Although the attorney’s role in the preparation of a valuation to support a transaction is limited, most attorneys recognize the need to critically evaluate the opinions they and their clients obtain from valuation experts. Attorneys assist in setting expectations, and helping clients understand why their “back of the envelope” valuation may be unrealistic. This article answers questions that lawyers and their clients commonly ask during the business valuation process.