Jon Vick, President of ASCs Inc.: ASC values have been steady in a narrow range for the last 16 months, and we see them staying about where they are now for the foreseeable future. The ASC market remains very competitive; there are still over 40 ASC management companies seeking to buy either minority or majority interests. The multiples of EBITDA are typically in the range of 6 to 7 for majority interests and 4 to 5 for minority interests for sales to ASC management companies. Physician interests are typically sold for about 50 percent of the value offered by the ASC management companies.
The best way to get the highest price is to obtain competitive bids from two to three of the leading companies that are interested in the specific type of ASC, based on specialties, amount that is for sale (minority or majority), location, CON, growth opportunities, maturity of center and other variables. By negotiating several competitive offers, we arrive at a higher offer from leading ASC management companies, thus giving the ASC owners a choice of partners at the highest possible price.
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