Your Primer to Healthcare Mergers and Acquisitions

Category: Valuation

Exit Planning, Valuation
Preparing Your Healthcare Company's Financials for an Exit

During the healthcare M+A process, the benefit of accurate financials cannot be understated. Financial reporting is the foundation on which your business is valued, and meaningful data presented in an organized fashion can lower a buyer's perceived risk. This likely means more money in your pocket on the closing date.

Yet, it is an all-too-common occurrence to see frustrations arise as a healthcare business owner works through the financial due diligence process. The lists are exhaustive, the requests elaborate, and the stakes high. By taking a few steps, even 3-6 months before you go to market, the due diligence process can be simplified in an impactful way. Sailing through financial requests allows an owner's focus to be rededicated to other, equally important parts of the sale process.

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Healthcare Sectors, Valuation
Understanding and Valuing a Freestanding Emergency Department

Freestanding emergency departments (FSED) have seen substantial growth over the past two decades. Research published in the Western Journal of Emergency Medicine states that the National Emergency Department Inventory determined in 2001 that about 1% of all emergency departments (ED) in the United States were FSEDs. Fast forward to 2016 and the Medicare Payment Advisory Commission reported that FSEDs had accounted for 11% of all EDs nationwide. Grand View Research is projecting that the U.S. FSED market size, which was valued at around $3 billion in 2019, is expected to expand at a compound annual growth rate (CAGR) of around 5% from 2020-2027.

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Healthcare Sectors, Valuation
What's the Value of Your Dental Practice?

Few dentists are aware of the market value of their dental practice. Moreover, most don’t understand how industry experts (e.g., accountants, bankers, dental practice brokers, and buyers) determine the value of dental practices.

In this column, I'll be helping you better understand how the value of a dental practice is determined. Let’s begin with some of the key performance indicators that buyers look for when evaluating dental practices.

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Healthcare Sectors, Market Trends, Valuation
Retail Pharmacy Update: Opportunities, Challenges, and Valuations

Prior to the pandemic, the retail pharmacy industry was experiencing significant disruption. We were witnessing a steady increase in transactions and consolidation, Amazon's entry into the market, significant changes to strategic alliances between major payers and pharmacy benefit managers (PBMs), and the introduction of a wide array of new technologies, just to name a few noteworthy trends and developments. It's safe to say that COVID-19 not only disrupted some of these disruptors, but it also brought with it new disruptors.

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Exit Planning, Valuation
How You Can Increase the Value of Your Healthcare Company

Owners of healthcare companies, practices, and agencies often ask us how they can increase their businesses' market value. Buyers determine the value of a business based on return on investment and riskiness of the investment. Business owners create value by increasing the return on investment and decreasing the riskiness of ownership.

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Exit Planning, Healthcare Sectors, Valuation
What's the Value of Your Home Healthcare Agency?

The only constant for home healthcare agencies is change. For many owners of agencies, change is both demanding and fatiguing. At some point, owners start thinking about exiting their company. Some owners elect to pass ownership down to their adult children. Some stop taking on new clients/patients and simply close their doors. Others seek to sell their company in the marketplace. This column is written for those owners considering selling in the marketplace.

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Exit Planning, Healthcare Sectors, Valuation
Thinking of Selling Your Urgent Care Center?

The healthcare industry is continually in flux. Business owners and operators of urgent care centers (UCCs) are constantly experiencing changing regulatory guidelines and suppressing reimbursement from payors. These unpreventable changes and a demanding environment may lead owners to seek monetization of their assets. For those UCC owners considering selling, there's good news: The marketplace is currently hungry for your companies and buyers are eagerly gobbling up well-performing UCCs.

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Valuation
What's Your Healthcare Company Worth?

This article on healthcare company valuation examines the amount private equity firms are paying for companies in 2019. Private equity is composed of funds and investors that directly invest in private companies or that engage in buyouts of public companies, resulting in the delisting of public equity. Much of private equity funding is spent on healthcare, manufacturing, and service businesses.

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Healthcare Sectors, Valuation
7 Qualities That Drive Value For Ambulatory Surgery Centers

This article focuses on the qualitative factors that affect valuation in ambulatory surgery centers (ASCs). Seven specific qualitative factors are discussed in detail.

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Exit Planning, Valuation
Is Your Healthcare Company Ready for Sale?

After years or decades building your healthcare company/practice, it's increasingly likely that you will find yourself thinking about the prospects of selling your company. You should understand the key "value drivers" of your company.

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Valuation
Why Your Healthcare Clients Should Have Their Companies Appraised

For most owners of a healthcare business, their company or practice is their most valuable asset. Yet, most of these owners do not know the value of their company nor the key value drivers that attract buyers. This article discusses four of the key reasons why obtaining an appraisal (i.e. valuation) of their healthcare company is important.

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Healthcare Sectors, Valuation
A Tale of a Sale in Behavioral Healthcare

A true story of the recent sale of a behavioral healthcare company from the initial valuation through creating value and closing the transaction.

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