Here are 28 benchmarks to know on ASC valuation from a variety of sources in the industry.
HealthCare Appraisers released their 2018 ASC Valuation Survey which offers insights into ASC valuation and ownership trends. HealthCare Appraisers surveyed 15 respondents that represented 700-plus surgery centers throughout the country.
1. About 38 percent of respondents reported a valuation of 4.0 to 4.9 times EBITDA when purchasing a minority stake in a single-specialty ASC. Approximately 15 percent reported higher valuation multiples of 5.0 to 5.9 times EBITDA, while 46 percent reported valuations between 2.0 to 3.9 times EBITDA.
2. When purchasing a controlling stake in a single-specialty center, 76 percent of respondents reported valuation multiples of 6.0 to 7.9 times EBITDA, while 23 percent reported valuation multiples of 5.0 to 5.9 times EBITDA.
3. Concerning previous surveys, 78 percent of respondents reported valuation multiples of 6.0 to 7.9 times EBITDA for a controlling stake in a single-specialty ASC in previous years.
4. Minority shares increased valuations. Exactly 57 percent reported valuations between 4.0 to 5.9 times EBITDA, while 7 percent reported valuations between 6 to 6.9 times EBITDA. Yet, 35 percent reported a valuation of 3 to 3.9 times EBITDA.
5. Controlling interest in a multispecialty ASCs further increased the valuation. About 64 percent reported valuations between 7 to 7.9 EBITDA, while 29 percent reported valuations between 6 to 6.9 EBITDA.
6. These valuations were also consistent with previous surveys where 75 percent reported valuations between 7 to 7.9 times EBITDA for a controlling interest in a multispecialty ASC in previous surveys.
7. ASCs with certificates of need commanded a higher value. Here 86 percent of respondents said they'd pay an additional 0.26 to 1.0 atop the expected EBITDA to acquire an ASC with a CON.
HealthCare Appraisers surveyed 15 respondents representing more than 700 surgery centers across the U.S. to formulate statistics on ASC valuation muliples.
Minority interest, single-specialty
8. 2 to 2.9 times: 8 percent
9. 3 to 3.4 times: 23 percent
10. 3.5 to 3.9 times: 15 percent
11. 4 to 4.9 times: 38 percent
12. 5 to 5.9 times: 15 percent
Controlling interest, single-specialty
13. 5 to 5.9 times: 23 percent
14. 6 to 6.9 times: 38 percent
15. 7 to 7.9 times: 38 percent
Minority interest, multispecialty
16. 3 to 3.4 times: 14 percent
17. 3.5 to 3.9 times: 21 percent
18. 4 to 4.9 times: 50 percent
19. 5 to 5.9 times: 7 percent
20. 6 to 6.9 times: 7 percent
Controlling interest multispecialty
21. 6 to 6.9 times: 29 percent
22. 7 to 7.9 times: 64 percent