Transaction tip of the day: when is the right time to sell?

The ambulatory surgery center market is alive with mergers and acquisitions, but there are independent ASCs that continue to flourish. How do physicians determine if and when an ownership sale is the right decision?

Here are three different components to take into account when deciding to sell a controlling stake, according to Thomas J. Chirillo, senior director of outpatient services and ASC development with Tenet Healthcare, in a Becker's ASC Review report.

•    Emotional. "Once you mention that word [controlling] with a surgeon, it sparks a flurry of questions." Surgeons have to consider the time they have invested building the ASC's business when considering selling a majority stake.
•    Financial. The price offered for a significant portion, or all, of an ASC is an important factor for its sellers.
•    Strategic. "The strategic reason behind a sale is to partner with an entity that can up the level of leverage [in the market]."

"Selling a minority interest centers around a turnaround element, adding physicians or bringing in a management company as an impartial partner," said Mr. Chirillo.

Read the full report on Becker's ASC Review.

More Articles on Transactions and Valuation Issues:
8 ASC Real Estate Transactions in 2014
5 Articles on Successful ASC Real Estate Ownership & Transactions
9 ASC Joint Venter Operating Agreement Issues That Make or Break the Partnership

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Webinars

Featured Whitepapers

Featured Podcast