How is offering price determined?
• Risk adjusted multiple of EBITDA: 41 percent
• Discounted cash flow analysis: 26 percent
• Third party fair market value opinion: 26 percent
• Standard multiple of EBITDA: 7 percent
How often do ASC management and development companies adjust offering price after further due diligence?
• Rarely: 59 percent
• Often: 35 percent
• Never: 6 percent
More Articles on Transactions and Valuation Issues:
9 Recent Surgery Center Acquisitions
12 Statistics on Case Volume Mix at ASCs
12 Statistics on Medicare Funding Sources & Expenditure
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.
