Prevailing multiples for healthcare ASCs

BVWireIssue #152-2
May 13, 2015

The ambulatory surgery center field was very active last year with new transactions and partnerships, according to the 2015 ASC Valuation Survey from HealthCare Appraisers Inc. This level of activity will likely continue this year, says the report.

Healthy numbers: For multispecialty ASCs, 78% of the respondents reported multiples of 7.0 to 8.0 times EBITDA when purchasing a controlling interest. When purchasing a controlling interest in single-specialty ASCs, 65% said the prevailing valuation multiples were 6.0 to 7.9 times EBITDA. Most ASC company respondents are willing to pay a premium for ASCs in certificate-of-need states, with 57% reporting they would add a premium of 0.51 to 1.0 to the typical multiple.

“For 2015, acquisition activity is expected to remain high, as 60% of our respondents plan to purchase between one and five ASCs, 25% plan to purchase between six and 10 ASCs, and 5% plan to purchase 15 or more ASCs,” according to the report. The survey includes responses representing well over 500 ASCs throughout the country.

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