Business valuation should be based on qualitative and quantitative factors. Unfortunately, some valuators don't truly understand the qualitative nature of valuation. A such, CEOs, investors, and business owners often unwittingly rely on erroneous valuations. Any one of these five significant red flags should alert you to seek another opinion of value: View full article by downloading PDF attachment.
Added: May 24, 2017 - 8:12 PM / Views: 38
Owners of healthcare companies are accustomed to creating financial value by focusing on the traditional approaches of scope of services, client/patient capacity, and revenue streams via reimbursement yield and patient volume. While revenue growth and operational efficiency are key value drivers, neither addresses a critical value factor known as Company Specific Risk (CSR). Differences in CSR are the primary reason that some healthcare firms get top dollar when sold, while others receive only a fraction of their potential sale price. Here's what healthcare owners can do today to increase their financial value by decreasing their CSR:
Added: May 24, 2017 - 8:23 PM / Views: 54
Have you ever wondered why two seemingly similar companies sell at significantly different multiples? What are buyers seeing in ostensibly comparable companies that causes sale price differences? The three secrets of market multiples are: View full article by downloading attached PDF.
Added: May 24, 2017 - 8:15 PM / Views: 46
This past week, I listened to a compelling presentation on the evolving nature of value in healthcare by Monica Oss of Open Minds. At the conclusion, she noted that value-based payments for healthcare services and products “are at the core of healthcare innovation” and that "providers must be able to demonstrate value internally and externally.” The financial value of a healthcare company is obviously based on its bottom line. However, great financial results mean little if other people, especially investors or potential purchasers of the business, aren’t confident that they represent reality. View full article by downloading the attached PDF.
Added: May 24, 2017 - 8:13 PM / Views: 29