Physicians Practice Questions & Answers : Buyout Rates

Business Resources
by Category

-- Advertisement --
View a free webinar on Revenue Cycle Management.

-- Advertisement --

White Papers

Assessing the Value of Mobile Point-of-Care Solutions for Three Clinical Workflows -
Healthcaregoesmobile.com

View All

Try our "Virtual Buyers Guide!"
-flip through the pages!
-search by keyword!
-download to your desktop!
-forward to a colleague!

< Home < Q&A < Q&A Details

Questions & Answers

Buyout Rates (posted 2/1/06)

Q: What is the going rate for buyout of ambulatory surgery centers? I know that this is usually based on multiples of earnings or EBITDA (earnings before interest, taxes, depreciation, and amortization) minus debt, but I would like to know what the going multiples number is.

A: There are many mitigating factors, including the number and types of cases, payer mix, how many shareholders, capacity, and so on, but a decent standard for a minority shareholder buyout is 3 to 5 times EBITDA or 0.8 to 1.2 times revenue.

Additional Resources

View more questions and answers from the February 2006 issue

View more questions and answers related to Strategy

View more questions and answers related to Finance

Ask an Expert

Can't find the answer to your question? Send a question to our experts and receive an answer via e-mail. Who are our experts?

Search Q&A

Ask the Experts

Have a practice management question?
Ask an expert!

Who are our experts?

Find answers to previously asked questions in our Q&A Business Resource

What do you think?
Comment now!