Our Valuation Principles

An accurate Valuation is more than just checking a box. An effective valuation can help prepare a business for long-term stability, just as a unrealistic valuation, often influenced at the pleasure of the client and actually destroy value

At Sapient Health we work to understand your business and both the Qualitative and Quantitative Factors that will influence your valuation

Quantitative Valuation Methods

  • Project future cash flows and make a terminal value assumption

  • Assess comparable valuations for similar centers that received investment or were part of syndication

  • Asses the value of the assets and the license of the ASC as well as cash flows

Quantitative Valuation Factors

  • What rights and controls, (both negative and positive) does the equity have?

  • Can the security be redeemed without cause? Can it be redeemed at the purchase price, or does a fresh FMV need to be calculated

  • If the acquirer of the equity is a physician, will they face any site-of-service reductions or other revenue losses from joining a center?

  • Does the equity holder have voting and other Board rights? Can they veto decision that may impact their ownership and its value?

Qualitative Valuation Factors

  • is the there a broad based of providers bring cases or is there concentration risk?

  • Is the ASC in-network or Out-of-Network, is there case or payor concentration, and is there risk to current reimbursement levels?

  • What is the potential for growth? Is the ASC near capacity, are there independent physicians in the area who may want to perform cases at the Center?

  • What is the profile of the physician providers? Are they close to retiring, at risk of leaving?