7 statistics on ASC valuations in 2017 & 2018

Written by Eric Oliver | April 26, 2018 | Print  |

HealthCare Appraisers released their 2018 ASC Valuation Survey which offers insights into ASC valuation and ownership trends.

HealthCare Appraisers surveyed 15 respondents that represented 700-plus surgery centers throughout the country.

Here are seven statistics on ASC valuation.

1. Thirty-eight percent of respondents reported a valuation of 4.0 to 4.9 times EBITDA when purchasing a minority stake in a single-specialty ASC. Approximately 15 percent reported higher valuation multiples of 5.0 to 5.9 times EBITDA, while 46 percent reported valuations between 2.0 to 3.9 times EBITDA.

2. When purchasing a controlling stake in a single-specialty center, 76 percent of respondents reported valuation multiples of 6.0 to 7.9 times EBITDA, while 23 percent reported valuation multiples of 5.0 to 5.9 times EBITDA.

3. HealthCare Appraisers said the valuations were in line with previous surveys. Seventy-eight percent of respondents reported valuation multiples of 6.0 to 7.9 times EBITDA for a controlling stake in a single-specialty ASC in previous years.

4. Acquiring a minority share of a multispecialty ASC increased the valuation. Fifty-seven percent reported valuations between 4.0 to 5.9 times EBITDA, while 7 percent reported valuations between 6 to 6.9 times EBITDA. Yet, 35 percent reported a valuation of 3 to 3.9 times EBITDA.

5. A controlling interest in a multispecialty ASC increased the valuation even more. Sixty-four percent reported valuations between 7 to 7.9 EBITDA, while 29 percent reported valuations between 6 to 6.9 EBITDA.

6. These valuations were also consistent with previous surveys. Seventy-five percent reported valuations between 7 to 7.9 times EBITDA for a controlling interest in a multispecialty ASC in previous surveys.

7. ASCs with certificates of need commanded a higher value. Eighty-six percent of respondents said they'd pay an additional 0.26 to 1.0 atop the expected EBITDA to acquire an ASC with a CON.

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