3 Things to Know About the De Novo ASC Market

Here are three things to know about the current market for de novo ASCs, according to HealthCare Appraisers’ 2010 ASC Valuation Survey, which includes responses from 17 organizations representing over 500 surgery centers throughout the country.

Advertisement

1. 82 percent of respondents report that they seek de novo opportunities. Those seeking de novo opportunities increased significantly from the last HealthCare Appraisers survey,

2. For a de novo surgery center, 24 percent of respondents reported “buy-in” prices of $10,000-$15,000 per 1 percent interest, and 46 percent report pricing of less than $10,000. This reflects a marked decrease in unit value from last year’s survey. 81 percent of the respondents indicated a general preference to hold minority (i.e.., less than 50 percent) ownership interests in ASCs. Only 19 percent indicated a desire for a majority interest, and no respondents indicated a desire to acquire greater than a 75 percent ownership interest.

3. 94 percent of the respondents require a personal guarantee of a pro rata share of any initial debt obligation for de novo centers.

To receive a copy of the 12-page Healthcare Transactions
2010 ASC Valuation Survey, please contact HAI at info@hcfmv.com or (561) 330-3488 or download a PDF version at www.healthcareappraisers.com.

Learn more about ASCs from other HealthCare Appraisers’ surveys:

Methodology for Determining Purchase Prices for New Physician Investors

Valuation Multiples for Minority Interests in ASCs

Impact of Hospital Ownership on an ASC’s Value to a Third-Party Management Company

Advertisement

Next Up in ASC Transactions & Valuation Issues

Advertisement

Comments are closed.