The HealthCare Appraiser, Inc. 2009 ASC Valuation Survey results have been released and provide insight into the ASC acquisition market for 2008 and trends in 2009. For the past six years, HealthCare Appraisers has surveyed the "Who's Who" in the ambulatory surgery center (ASC) industry to determine trends in the value of ASC ownership interests and management fees charged to ASCs. This year's survey was the most comprehensive ever, both in terms of the number of participating ASC companies and the breadth of valuation issues addressed. Highlights of the 2009 ASC Valuation Survey include:
ASC acquisition activity declining but valuation multiples maintaining
While slightly over half of the respondents reported that acquisition activity in the ASC market is declining, 45% of respondents perceive that valuation multiples in 2008 have stayed consistent with the prior year.. Prevailing multiples in 2008 for controlling interests continued to be 6.0 times EBITDA or higher for the majority of respondents.
Actively searching for acquisitions in 2008
During 2008, respondents were actively searching for potential acquisitions. One-third of respondents performed due diligence on 16 or more ASCs, while 22% of respondents performed due diligence on 6 to 10 acquisition opportunities. One-third of respondents reported that competition for ASC investment opportunities has declined, while 22% reported that competition has increased, and 45% reported no change.
Most preferred specialties for ASCs
Physician-investors prefer orthopedics, ophthalmology and ENT specialties for ASCs. A strong majority of survey respondents identified cosmetic surgery as an undesirable specialty in an ASC.
Request a free copy of the 2009 ASC Valuation Survey
If you would like to receive a copy of the 2009 ASC Valuation Survey, please e-mail your U.S. Mail address to HealthCare Appraisers at info@hcfmv.com or call us at (561) 330-3488. A .pdf version of the survey is available for downloading at their Web site: www.HealthCareAppraisers.com and click on the Industry Surveys tab.
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