4 Operating Agreement Risk Factors That Impact an ASC’s Value

Partnership or operating agreement risk relate to the terms by which an ASC is governed and managed. Here are four operating agreement risk factors and relative importance ASC operators weigh on each, according to VMG Health’s ValueDriver ASC Risk Assessment Survey.

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1. ASC ownership structure (LP, LLP, LLC, etc.)

  • Very low — 55 percent
  • Low — 14 percent
  • Medium — 23 percent
  • High — 8 percent
  • Very high — 0 percent

2. Existence of mandatory buy/sell provisions

  • Very low — 9 percent
  • Low — 5 percent
  • Medium — 27 percent
  • High — 45 percent
  • Very high — 14 percent

3. Non-compete covenants with physician owners

  • Very low — 0 percent
  • Low — 0 percent
  • Medium — 5 percent
  • High — 45 percent
  • Very high — 50 percent

4. Existence of partnership eligibility requirements

  • Very low — 5 percent
  • Low — 14 percent
  • Medium — 41 percent
  • High — 27 percent
  • Very high — 13 percent

Information comes from VMG Health’s ValueDriver ASC Risk Assessment Survey. VMG Health is a leading valuation and transaction advisory firm in healthcare. To receive a complimentary copy of VMG Health’s ValueDriver ASC Risk Assessment Survey, click here.

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