Healthcare Fair Market Value Opinions

The Healthcare industry is impacted by a variety of rules and regulations which often require that the price or consideration included in a transaction be consistent with Fair Market Value (“FMV”). Examples of these regulations include the Stark Law, the Anti-Kickback Statue or Internal Revenue Service rules governing tax exempt organizations.

Acting as an independent third party, VMG performs hundreds of FMV business valuation opinions each year in support of healthcare transactions to ensure regulatory compliance, assist clients without experience in valuation or to provide both parties comfort that the consideration included in a transaction is consistent with market levels. VMG has performed FMV business valuations for entities ranging from small, solo-physician practices to large, multi-facility health systems.

VMG has worked throughout the United States and internationally for clients including investor-owned and non-profit hospital systems, academic medical centers, internal/outside counsel, management companies and physician organizations. Types of transactions that VMG provides FMV opinions for include, but are not limited to, the following:

  • FMV of a controlling business interest for purposes of an acquisition or merger;
  • FMV of a minority interest for equity shareholder buy in/buy out;
  • FMV of the contributions of a business or line of business to a joint venture to establish relative equity;
  • FMV of a business enterprise for conversion from a for-profit to non-profit entity or vice versa;
  • FMV of specific intangible assets such as a certificate of need (“CON”), tradename/brand and non-compete agreements; and
  • Valuation of personal goodwill associated with owner physicians.