How do ambulatory surgery companies determine ASC offering price? Here are seven statistics on offering price strategy and whether or not ASC companies adjust offering price, according to VMG Health's 2011 ASC ValueDriver Survey.
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
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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