Valuing an Acquisition: Don’t Stop at FMV

by Daniel M. Grauman, Managing Director & CEO,
Danielle Bangs, Manager,
Sean Looby, Manager
hfm Blog
July 12, 2017

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  When a healthcare organization is considering an acquisition, there are two imperatives: It should know both the fair market value (FMV) of the target organization (the value to a hypothetical buyer) and its investment value (the value to a particular buyer), and it should understand the difference between these values. An acquirer should carefully […]

How Risk Affects Valuation

by Denise Palencik, Manager

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Business valuation is as much an art as a science. It not only requires technical knowledge of valuation methodologies, it requires the valuator to have significant judgement and the industry experience to evaluate the entity in the context of a broad understanding of the industry. One area where a valuator must exercise considerable judgement is […]

The Advantages and Limitations of Practice Leases

by Rich Chasinoff, Principal & Karin Chernoff Kaplan, Director
hfm Blog
May 12, 2016

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Veralon’s Rich Chasinoff and Karin Chernoff Kaplan explain how practice lease arrangements between hospitals and physicians are a way to achieve alignment without a change in ownership.

Ten Questions Lawyers and Clients Ask About FMV Valuations

by Jessica E. Stack, Manager; Denise Palencik, Senior Associate;
Karin Chernoff Kaplan, Director
AHLA Business Law & Governance
May 2016

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Nearly every health care business transaction must be based on some measure of fair market value (FMV). Although the attorney’s role in the preparation of a valuation to support a transaction is limited, most attorneys recognize the need to critically evaluate the opinions they and their clients obtain from valuation experts. Attorneys assist in setting expectations, and helping clients understand why their “back of the envelope” valuation may be unrealistic. This article answers questions that lawyers and their clients commonly ask during the business valuation process.

Fair Market Value Versus Strategic Value

by Karin Chernoff Kaplan, Director & Denise Palencik, Senior Associate
HFM Blog
February 2015

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  In evaluating the fair market value (FMV) of healthcare entities, we often are asked why we do not adjust the revenue stream of the business being evaluated to reflect the payment rates of the potential buyer. The answer is based on the Stark and Anti-Kickback statutes, and in the difference between FMV and strategic […]