Business Valuation Services
DO YOU KNOW THE CURRENT MARKET VALUE OF YOUR SPECIALTY PHYSICIAN PRACTICE OR HEALTHCARE SERVICES BUSINESS?
Having performed over 2,000 separate valuation projects involving specialty physician practices and healthcare services businesses, Haverford Healthcare Advisors is the valuation specialist of choice for numerous small, mid-sized, and large healthcare enterprises throughout the United States.
Our expertise results in not only a value opinion, but in critical insights and information which help our clients better understand their business and enable healthcare executives to make better decisions.
Haverford’s specialists possess valuation-related credentials from the leading professional organizations and have critical expert witness testimony and appraisal review experience. The quality of our healthcare business valuation services is enhanced by our active transaction advisory practice which provides us with direct, timely access to real-world healthcare market activity.
We prepare valuation analyses for the following purposes, among others:
- Transaction-Related Valuation Opinions
- Joint Venture/Merger Valuation Opinions
- Minority Interest Valuations / Shareholder Agreements
- Litigation Support and Marital Dissolution
- Shareholder Disputes and Buyouts
- Estates and Gift Tax Planning and Compliance
- Valuation of Private Stock Received as Purchase Price Consideration
FAQs on Healthcare Business Valuation
Our healthcare valuation practice has a 35+ year track record of success. We have valued hundreds of healthcare businesses throughout the country, including numerous repeat clients.
We provided valuation services to virtually all segments of healthcare, including:
Specialty Physician Practices
- Pathology Practices
- Radiology Practices
- Anesthesia Practices
- GI Practices
- Cardiology Practices
- Urology Practices
- ENT Practices
- Primary Care Practices
- Pain Practices
- Orthopedic Practices
- Dental Practices
- Oral Surgery Practices
- Veterinary Practices
Ancillary and Other Services
- Clinical and Anatomic Pathology Laboratories
- Diagnostic Imaging Centers
- Ambulatory Surgery Centers
- Billing/Revenue Cycle Management Companies
- Radiation Treatment Centers
- Urgent Care Centers
- Dialysis Centers
- Skilled Nursing Facilities
- Assisted Living Facilities
- Vascular Access Centers
- Sleep Disorder Clinics
- Home Health Providers
- Autism Treatment Centers
- Physical Therapy Centers
- Other Healthcare Services Providers
- On Call Coverage and Medical Director Services
Healthcare is a highly-regulated industry, especially since the largest payer is Medicare, a government payer. Understanding fair market value is a big deal, especially regarding healthcare practices. At the end of the day, making sure healthcare centers are valued properly benefits everybody involved.
Operating above or below fair market value could lead to serious consequences, including
- Criminal and civil fines
- Exclusion from federal payor programs
- Federal law violations
That’s why it’s important to bring in business valuation experts who can help determine fair market value using various valuation approaches such as discounted cash flow, tangible and intangible assets, and similar market transactions.
With over 35 years of experience advising healthcare business owners across the United States, Haverford Healthcare has handled countless valuation analyses, acquisitions, and transactions, adding up to billions of dollars in business value.
The appraisal process involves considering a multitude of data points, from academic research and government studies to Medicare cost reports and SEC filings.
Also, the appraiser uses their judgment to select the appropriate valuation method based on the unique circumstances of each arrangement. By combining these varied sources of information and circumstances, healthcare valuation services can be accurately valued to establish FMVs.
The critical factors for healthcare valuation firms and hospitals to take into account are:
- The particular sub-specialty segment of healthcare in which the client participates.
- The historical volume, revenue, and profit performance of the client.
- The anticipated growth opportunities in volume and reimbursement trends.
- Competition and industry dynamics.
- Exterior factors such as regulation, technology, and the economy.
Determining a business’s value is crucial whether you plan on selling or strategizing for the future. You may not even realize the full extent of what you’ve built – which can end up costing you in the end. So refrain from letting a lack of understanding lead to a decline in value when it comes time to sell.
Valuing a healthcare business can be tricky since every establishment is unique. Determining their worth follows the income valuation approach, which considers a broad range of factors, including financial stability, current market trends, brand value, competition, and future earnings capability.
Haverford Healthcare’s assessments are tailored to give you the most informed understanding possible so you can make the smartest investment moves. It’s a complex process, but the stakes are high when appraising something as essential as healthcare.
Valuations of healthcare can be time-consuming. Most valuations can be done in just a few weeks to a couple of months. For others, gathering information and digging into nitty-gritty details could take months. Nevertheless, regular valuations are your secret weapon to financial triumph, so be patient with the final results.
Haverford Healthcare’s assessments are tailored to give you the most informed understanding possible so you can make the smartest investment moves. It’s a complex process, but the stakes are high when appraising something as essential as healthcare.
Given that Medicare and Medicaid – both government payers – are amongst the largest sources of healthcare reimbursement in the country, it is important to be aware of the regulations put forth on the healthcare industry by these payers. Many regulations exist which require relationships between various types of healthcare providers to be compensated at rates approximating fair market value.
Every industry faces unique challenges. It is virtually impossible to calculate the true value of a healthcare entity without extensive knowledge gained over years of experience. Here at Haverford Healthcare, we understand:
- Factors driving patient volume.
- Revenue cycle management and reimbursement.
- The shift from Fee-for-Service to value-based compensation models.
- Physician compensation models.
- The interplay between senior partners, junior partners, employed physicians, and physician-extenders.
- The relationship between healthcare systems, physician practices, outpatient facilities, and their suppliers.
- Regulatory concerns.
Valuation of any company in any industry is a multi-faceted process. If the client is a healthcare company, the valuation process is even more complicated and requires an expert.
Healthcare Business Valuation Services are professional services provided to clients in order to help our clients understand the value of their business or practice. Once our clients understand the value of their business, they are better able to make critical decisions such as:
- Is the offer I have received from a buyer a fair representation of the value of my practice?
- I am contemplating selling my business; how much could I sell the business for?
- I want to establish a buy-sell agreement with my partners. At what price should new partners buy into the practice, and at what price should retirees be redeemed?
Haverford Healthcare Advisors has decades of experience – grounded in both finance theory and real-world transactional experience – to justify and support our valuation opinions. We understand the unique characteristics of the healthcare industry.