7 Critical Questions on Surgery Center Transactions and Valuation Issues

Published by Becker’s ASC Review

1. Q: How are ambulatory surgery centers being priced today?

Stephan Peron: In today’s economic environment there has been a greater segregation in pricing based on quality due diligence in the eyes of a buyer to qualify an investment as a high-quality investment versus a low-quality investment. The same holds true for the surgery center market. ASCs considered high quality from a general market perspective must possess certain attributes that surgery center investment companies find to be attractive in regard to the ability to generate a strong return on investment. The prices on the high-quality surgery centers are still strong as compared to the market before the financial crisis in 2008 and 2009. The prices on the lower-quality surgery centers came down a few years back and have remained depressed as compared to times when the debt was readily available.

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