Here are 10 statistics on where ambulatory surgery center management and development companies target potential acquisitions, what type of ASCs are targeted and how offering price is determined, according to VMG Health's 2011 ValueDriver ASC Survey.
Do ASC management and development companies target ASCs in markets where they already have a presence?
• Yes, not exclusively: 58 percent
• Targeting new markets: 36 percent
• Yes, exclusively: 16 percent
What type of ASCs do ASC management and development companies prefer to acquire?
• ASCs with a proven history of successful performance: 44 percent
• Underperforming ASCs primed for a turnaround: 37 percent
• De novo ASC development: 19 percent
How do ASC management and development companies determine offering price?
• 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
More Articles on Transactions and Valuation Issues:
San Antonio Orthopaedic Group Remodels ASC for More ORs
14 Hospitals & Health Systems Recently Planning or Opening Surgery Centers
How Has the ASC Acquisitions Market Changed?
Do ASC management and development companies target ASCs in markets where they already have a presence?
• Yes, not exclusively: 58 percent
• Targeting new markets: 36 percent
• Yes, exclusively: 16 percent
What type of ASCs do ASC management and development companies prefer to acquire?
• ASCs with a proven history of successful performance: 44 percent
• Underperforming ASCs primed for a turnaround: 37 percent
• De novo ASC development: 19 percent
How do ASC management and development companies determine offering price?
• 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
More Articles on Transactions and Valuation Issues:
San Antonio Orthopaedic Group Remodels ASC for More ORs
14 Hospitals & Health Systems Recently Planning or Opening Surgery Centers
How Has the ASC Acquisitions Market Changed?