4 Financial Risk Factors That Can Impact an ASC’s Value

Here are four financial and operational risk factors that can have an impact on an ASC’s value and the relative importance ASC operators placed on them, according to VMG Health’s ValueDriver ASC Risk Assessment Survey.

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1. History of successful distributions to ASC investors:

  • Very low — 0 percent
  • Low — 14 percent
  • Medium — 45 percent
  • High — 27 percent
  • Very high — 14 percent

2. Growth rate of prior two to three year period:

  • Very low — 0 percent
  • Low — 9 percent
  • Medium — 50 percent
  • High — 41 percent
  • Very high — 0 percent

3. Expected growth in future periods:

  • Very low — 0 percent
  • Low — 0 percent
  • Medium — 14 percent
  • High — 32 percent
  • Very high — 54 percent

4. The level of financial leverage (debt level):

  • Very low — 0 percent
  • Low — 45 percent
  • Medium — 41 percent
  • High — 14 percent
  • Very high — 0 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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