Jon Vick is president of ASCs Inc., which advises surgery center owners on strategic partnering and joint ventures.
Q: If one of the effects of a down economy is that it creates a buyer’s market, why should I consider selling part of my ASC now?
Jon Vick: I disagree with the premise. What we have seen is that the down market makes investments in assets that generate predictable cash flow and high EBITDA margins much more attractive than other investments. This makes more capital available and stimulates more buying activity, thus more competition from the 40-plus ASC companies and hospitals for a declining number of well-performing ASCs as well as turnaround opportunities, and this makes it more of a seller’s market than a buyer’s market.
We are currently representing over 20 ASCs and are receiving multiple offers on each one. The reason to consider selling now is that the current competition to invest in centers pushes the price higher and gives the sellers a choice of buyers, at least this is our experience.
Learn more about ASCs Inc.
Read more insight from Jon Vick:
– Partnering With a Corporate Entity Versus a Hospital: Q&A With Jon Vick, President of ASCs Inc.
– Best Time to Bring in a Hospital Partner for Your ASC: Q&A With Jon Vick of ASCs Inc.
– More ASCs Looking to Partner
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.