Volume 6 Issue 13, July 2, 2019
Here are four of the key reasons why obtaining an appraisal (i.e., valuation) of their healthcare company is important for your clients to do:
For example, we recently performed an appraisal of a behavioral healthcare company where the majority owner was in his mid-60s and wished to sell his company. The owner was surprised to learn that the value of the company was about half the value he expected. If we valued the company 3-5 years earlier, he would have had an independent, market-based expectation of the company’s future value and could have taken steps to increase value before selling.
For example, a durable medical equipment client of ours with several owners had one owner planning to exit the company in a few years. This partial owner presumed the remaining owners would buy his ownership interest for a price he had contrived. After we completed an independent appraisal, the owners were surprised by our value determination — especially the retiring partner whose predetermined price significantly exceeded fair market value. The partial owner advised us that due to the appraisal results, he would need to delay his retirement. In addition, he would need to work harder than he planned for the next few years to increase company value.
David is a seasoned commercial and corporate finance professional with over 30 years’ experience. As part of the VERTESS team, he provides clients with valuation, financial analysis, and consulting support. He has completed over 150 business valuations. Most of the valuation work he does at VERTESS is for healthcare companies such as behavioral healthcare, home healthcare, hospice care, substance use disorder treatment providers, physical therapy, physician practices, durable medical equipment companies, outpatient surgical centers, dental offices, and home sleep testing providers.
David holds certifications as a Certified Valuation Analyst (CVA), issued by the National Association of Certified Valuators and Analysts, Certified Value Growth Advisor (CVGA), issued by Corporate Value Metrics, Certified Merger & Acquisition Advisor (CM&AA), issued by the Alliance of Merger & Acquisition Advisors, and Certified Business Exit Consultant (CBEC), issued by Pinnacle Equity Solutions. Moreover, the topic of his doctoral dissertation was business valuation.
David earned a Doctorate in Business Administration from Walden University with a specialization in Corporate Finance (4.0 GPA), an MBA from Keller Graduate School of Management, and a BS in Economics from Northern Illinois University. He is a member of the Golden Key International Honor Society and Delta Mu Delta Honor Society.
Before joining Vertess, David spent approximately 20 years in commercial finance, having worked in senior-level management positions at two Fortune 500 companies. During his commercial finance career, he analyzed the financial condition of thousands of companies and had successfully sold over $2 billion in corporate debt to institutional buyers.
He is a former adjunct professor with 15 years' experience teaching corporate finance, securities analysis, business economics, and business planning to MBA candidates at two nationally recognized universities.