Posted Wednesday, May 17, 2023
Figuring out the mix of objective and subjective forces fueling hospice valuations is essential to getting the greatest return on investment when considering a sale, according to experts.
Hospice valuations have remained high, and these buyers see a promising return on investment and sustainable business growth because of rising demand for end-of-life care in the United States.
The details in determining a hospice business’ worth, however, can be tricky to tighten and turn into place – both for sellers and buyers. That’s according to Steve Garbon, a certified valuation expert and managing director at M&A advisory firm The Braff Group.
Often, the “devil is in the details,” Garbon said.
“When you’re looking at hospice, you really have to be careful that the terminal value of the business and cash flow is not too aggressive,” Garbon told Hospice News during a recent webinar. “At the end of the day when we think about multiples, [it’s] boiling down to the sap to make the syrup. It’s really important to keep in mind that, yes, there’s a science [and] there’s a math behind it.”
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Founded in 1989, The Corridor Group Holdings, LLC (Corridor) is a leading provider of technology-enabled outsourced coding, revenue cycle and education solutions to the post-acute healthcare industry. Leveraging deep and broad post-acute expertise, Corridor delivers documentation quality improvement and reimbursement success to clients ranging from large health systems and national chains to smaller, independently operated agencies. For more information visit www.corridorgroup.com.
