Root Valuation

As I reflect on 2024, I’d like to take a moment to celebrate the incredible work of the Root Valuation team. Our clients rely on our personal approach, expertise, and trusted insight, and we pride ourselves on bringing a high standard of quality to each and every interaction.    As we continue to move into a new year and navigate new challenges in the world of healthcare transactions, I’m thrilled to rely on such a talented and driven team and grateful to work alongside them.      Thank you for all you do! https://lnkd.in/gaSx87JR  #thankyou Todd Mello Mark Spurlin, CPA David Walline Breana Payne  #valuation #healthcarevaluation #healthcareappraisal

Did you know that inflation has a direct impact on the value of your practice valuation?    Inflation impacts the costs of goods and services used by a business, and when these costs rise faster than increases in revenue, profit will be negatively impacted. In healthcare, because reimbursement is typically fixed by contract or limited by CMS fee schedules, rising labor, supplies, and other operating costs present a major challenge.      In addition to the impact on expenses, inflation can also impact the cost of capital through higher borrowing rates or higher investor requirements for equity investments.  This will have a direct impact on the valuation multiples paid for a business.     The Root Valuation team offers decades of expertise in healthcare valuations, with unique insights into the healthcare market. We are up to date on current market conditions and best practices, allowing us to provide valuation services that take these factors into account.     Learn more: https://lnkd.in/gAv882sZ      #valuation #healthcarevaluation #healthcareappraisal #healthcarefinancials 

Warmest wishes for a healthy and happy holiday season to our clients, colleagues, partners, and friends.

A common question: “How much does a healthcare appraisal cost?”     As with many topics surrounding valuation, the answer is simply: “It depends.” The cost of an appraisal, which can vary from the start depending on the type of facility or organization, will be considered based on its unique considerations and components. We take into account:     ✅ Scope of work   ✅ Size and complexity of the organization — departments, locations, providers, etc.   ✅ Quality and accuracy of available data  ✅ Intended use   ✅ Age and health of business    Healthcare valuation is multifaceted and highly dependent on each organization’s individual needs. Contact Root Valuation at any time to discuss your options or begin the valuation process: https://lnkd.in/gJGVXyMP  #valuation #healthcarevaluation #healthcareappraisal 

Remember: market multiples are simple in concept, but are almost always more difficult in application. Purchase price (or value) is determined from many complex factors, and no two transactions are the same. There can be significant confusion around what multiple to expect based on inaccurate information and misguided assumptions.      Despite the large volume of information covering healthcare transactions, drawing conclusions from this information is often flawed at best. Valuation multiples vary from deal to deal for a variety of reasons, and public disclosure of transactions often exclude important factors. Don’t fall into the pitfall of simplicity — an appraiser can help you calibrate your expectations during the valuation process without relying on myths.      I discuss this in my presentation, The Myth of the Healthcare Multiple, available here: https://lnkd.in/gfR888hs      #valuation #healthcarevaluation #healthcareappraisal Root Valuation

No two healthcare organizations are alike — and the same goes for appraisal firms. When selecting a healthcare valuation expert, the expert should not only be highly competent, but also reflect the character and values championed by your organization.    Selecting an appraiser typically begins with filtering for experience and skill level, but your search shouldn’t stop there. Just like a physician’s bedside manner can impact a patient’s experience, an appraiser’s attitude when working with your organization (or an acquisition target) makes a difference.     When selecting an appraiser, consider:     ✅ Level of accessibility and professionalism     ✅ Emotional intelligence — their ability to navigate the egos, personalities, and other stressors     ✅ Openness to input — an ability to adapt to change as they work     ✅ Manner of speech — how they communicate complex information to those who may be less familiar     ✅ Integrity — a willingness to do what’s right, even when it’s not the desired outcome     Different circumstances may call for different qualifications in your appraiser, but shared values and cultural fit should be non-negotiable.     Have questions about healthcare valuation? Feel free to reach out to me directly on LinkedIn.     #healthcarevaluation #valuation #healthcareadvisoryservices #advisoryservices Root Valuation

Certificates of Need (CONs) are state regulatory documents required in the majority of states for major expansions, developments, and other healthcare facility projects. With varying criteria for approval, inconsistent expectations, and complex approval processes, they can also be difficult for physicians and owners to navigate without professional support. They also play a role in healthcare valuation.      Valuating a CON, which is considered an intangible asset, requires an in-depth understanding of not only the valuation theory applicable to these assets, but the fundamentals of the specific healthcare business and its operations.    In this article, I discuss some of the key value drivers and other considerations for CONs: https://lnkd.in/gMJ-8Ack     Have a question about CON valuation specific to your business? We can help. #valuation #healthcarevaluation #healthcareappraisal #healthcarefacilities Root Valuation

With sincere gratitude to our many wonderful clients, colleagues and friends, we wish you all a Happy Thanksgiving.

As a healthcare valuation professional, I am often asked: “Is price the same thing as value?”     While these two concepts are closely related, there are distinct differences. “Price” is the amount paid in a transaction; whereas “value” is a measure of the perceived worth of the item being transacted. As Warren Buffet famously said, “Price is what you pay, value is what you get.”     Here is how I break it down:     Price is an easily understood, objective measure, typically expressed in monetary terms. Value, on the other hand, can mean different things to different people and under different circumstances. Generally, the value we place on something is a function of its utility – that is, its usefulness in satisfying a want or need.       For appraisers, the term value must be defined a specific way to answer the question “value to whom, and under what transactional circumstances?” These are referred to as “standards of value” and include fair market value (required in most healthcare transactions), fair value, investment value, intrinsic value, and liquidation value. #fairmarketvalue #healthcarevaluation #healthcareappraisers Root Valuation

Many clients often ask: “How long does it take to complete a healthcare business valuation?”     While the typical business valuation will take approximately four to six weeks to complete, there are a variety of factors at play that will determine the complexity and efficiency of an engagement. The duration of a valuation engagement can be affected by:     ✅ Size and complexity of the business    ✅ The intended use of the appraisal (compliance, financial reporting, internal planning, litigation, etc)    ✅ Ability to easily contact company representatives and the timeliness of their responses    ✅ Quality, accuracy, and usability of the data we request, as well as how quickly your organization is able to provide it     Have questions about your healthcare business valuation? Feel free to reach out to me directly on LinkedIn.     #healthcarevaluation #valuation #healthcareadvisoryservices #advisoryservices Root Valuation