It’s a familiar scene from a blockbuster show: A billionaire investor sizes up a company by dividing the value of the company by its annual profit to find the multiple. It’s a metric used to assess the market value of an asset, and in the world of “Shark Tank,” it comes to investors quickly and […]
Challenge/Situation: To provide a valuation of the business operations of WRMC, and to partner in due diligence for a proposed long-term lease and operating agreement.
When a healthcare organization is considering an acquisition, there are two imperatives: It should know both the fair market value (FMV) of the target organization (the value to a hypothetical buyer) and its investment value (the value to a particular buyer), and it should understand the difference between these values. An acquirer should carefully […]
Challenge/Situation: To prepare a business valuation of a rapidly growing privately held urgent care company, Urgent Care Extra, with more than 30 locations
Business valuation is as much an art as a science. It not only requires technical knowledge of valuation methodologies, it requires the valuator to have significant judgement and the industry experience to evaluate the entity in the context of a broad understanding of the industry. One area where a valuator must exercise considerable judgement is […]
To determine the appropriate multiple of EBITDA in a healthcare transaction, parties must consider the size of the organization being acquired.
Veralon’s Rich Chasinoff and Karin Chernoff Kaplan explain how practice lease arrangements between hospitals and physicians are a way to achieve alignment without a change in ownership.
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.
In evaluating the fair market value (FMV) of healthcare entities, we often are asked why we do not adjust the revenue stream of the business being evaluated to reflect the payment rates of the potential buyer. The answer is based on the Stark and Anti-Kickback statutes, and in the difference between FMV and strategic […]
A health system’s efforts in deploying strategic network initiatives will be effective only if its leaders understand the unique factors affecting multi-provider networks.
