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
Do ASC companies adjust offering price after further due diligence?
• Rarely: 59 percent
• Often: 35 percent
• Never: 6 percent
More Articles on Transactions and Valuation Issues:
ASC Ownership Division: Structuring a 3-Way Joint Venture That Works
6 Recently Opened, Planned or Expanded Ambulatory Surgery Centers
8 New ASC Company Financial Reports
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.