Hospital Acquisition Support for an Investment Bank
A Global Investment Bank was organizing an acquisition bid for a hospital. An accurate and justifiable bid price was needed as a basis for the negotiation with the seller.
The valuation calculated for the bid exceeded $600 million
challenge
There was significant competition amongst well funded acquirers. The seller sought maximum price. The hospital operations were profitable, and the real estate it owned was undervalued on its balance sheet, The population it served was affluent, insured and aging. The demand for hospital services was increasing.
solution
Our expertise was relied on. Our calculations, justifications and presentation met regulatory compliance & due diligence compliance to support appropriate financing. The valuation combined multiple valuation processes:
- The current profitability of the hospital operations
- The future investments needed to acquire new technology, following our operations review
- The future value of hospital operations and expansion needs based on the demographics of the catchment area
- The value of the real estate and other assets
results
- The valuation enabled the investment bank to establish its investor consortium
- The valuation was used as a basis for presentation to the sellers of a bid supported by analysis
- The hospital due diligence and complex valuation process was completed in one month