Scott Becker, JD, CPA: We typically see for a minority interest a price for such shares of 3-4x EBITDA minus debt. Here, it would be wise to ultimately hire a valuation firm to ultimately determine the valuation price and fair market value. Each of VMG Health, HealthCare Appraisers and Principle Valuation handle such types of valuations. The February issue of the Becker’s ASC Review also covers some of these valuation issues.
What is the Reasonable EBITDA Multiplier for a Fifth Shareholder?
Q: We have a partner looking to become a shareholder in our endoscopy centger. He would be the fifth shareholder in a high-revenue center with income expected to remain stable. What is a reasonable multiplier for EBITDA?
