EBITDA Multiples by Industry: How Much Is Your Business Worth?
We present data on EBITDA multiples across eight industries, along with detailed analysis and tips to improve your multiple before exiting.
At this point, only one thing is certain about TrumpCare: it’s going to happen. But what will it look like? At this point nobody knows, probably including even Trump himself.
Nevertheless, it’s possible to read the tea leaves via Trump’s appointments and statements that he and his appointees have made in the past. Based on this, there are seven likely developments:
Our entire professional team believes that healthcare technology in all verticals will have more prominence, including revenue cycle management, outcome data measurement, and population analytics. The more integrated the technology is inside a healthcare company’s operations, the more it will increase the company’s valuation.
There are other factors that will affect healthcare company value, including the unfolding issue of minimum wage and the recently stayed increases in the exempt salary threshold advanced by DOL. These initiatives will have the greatest impact on labor-intensive services, which predominate in the healthcare marketplace.
Durable Medical Equipment (DME) and Medical Devices
“We have already undergone significant change with competitive bidding in the durable medical equipment (DME) market and there will be more to follow. Despite this there remain great opportunities and we have several good quality deals in our pipeline. In the medical device area, there will be very positive growth with the likelihood of a rollback on medical device taxes.”
— Bradley Smith, VERTESS Managing Director/Partner
Urgent Care Center (UCC), Ambulatory Surgery Centers (ASC), and Physician Practice
“Each of these areas continue to have strong investor interest, including private equity, and fit well with the focus on cost control. It appears that reimbursement will increasingly support more services in outpatient environments that are attractive for physician entrepreneurs. The markets will continue to expand even as they consolidate through increased M+A activity.”
— Luis de la Prida, VERTESS Managing Director
Pharmaceuticals and Contract Research Organizations (CROs)
“There are many exciting developments in all of these bioscience verticals and, despite the specter of TrumpCare, pharma’s shares have skyrocketed. I foresee strong growth in 2017 and beyond.”
— Teresa Gonzalo, VERTESS Managing Director
Homecare/Hospice, Intellectual/Developmental Disabilities (I/DD), and Addiction Treatment
“The value of programs will be maintained in 2017, with the possibility of some increases as consolidation ramps up in all areas, including nonprofits. While the I/DD market is experiencing more managed care reimbursement pressure, there remains a broad, politically agnostic base of support across the US.”
— Tom Schramski, VERTESS Managing Partner
This is not a time to “hunker down and hope for the best.” Quite the contrary, TrumpCare will drive massive change in the healthcare industry. In order to survive and thrive, you will need to: