Principle Valuation’s experts allocate the purchase price of an acquisition among land, buildings, equipment and intangible assets. These valuations give our healthcare and seniors housing clients the detail required to set up books for tax and financial accounting purposes, and can strengthen financial position through various depreciation and amortization rules.
Principle Valuation is one of the few firms with experts in the valuation of specific areas of healthcare and seniors housing business entities, including real estate, equipment and intangibles. These valuations can be used to obtain conventional financing for acquisition, expansion, or new construction.
Principle Valuation is one of the pioneers in conducting valuations and market studies through the HUD 232 program for seniors housing facilities, as well as 242 for hospitals. We are very familiar with the processes of the HUD program, and have conducted numerous studies, ranging from single properties to portfolios.
Auditors have been under scrutiny to monitor their clients’ assets, leading to many impairment considerations to determine whether the book value of their assets exceeds the business entity’s fair value. Working closely with the auditors, we have been involved in all aspects of the process from determining whether an impairment exists, to the valuation of the tangible assets and the reallocation of those assets to the books.
Principle Valuation has helped healthcare and seniors housing clients accurately value their real estate to reduce their tax liability and generate substantial tax savings that last for many years. In the wake of recent court rulings, even non-profit hospitals face potential tax liabilities, and need to take steps to minimize potential tax exposure.
Our professionals provide asset inventories of major movable equipment to our clients for financial reporting, to ensure regulatory compliance, insurance accuracy, and for tax purposes. During the inventory process, barcode tags can be applied, allowing the items to be individually tracked.
Principle Valuation’s insurance studies provide healthcare and seniors housing clients the documentation needed to appropriately reflect insurable values for buildings and equipment. These studies can save clients money by identifying areas in which they are overinsured, and can also identify areas where they are underinsured, and thus help them avoid an uninsured loss.
Principle Valuation’s building life studies help healthcare and seniors housing clients extend the remaining useful life of a property, lower capital expenditure requirements and reduce annual depreciation. This can extend the amortization period for bond financing and strengthen financial position.
Principle Valuation’s market studies enable seniors housing clients to understand how they are positioned in the marketplace, and help them set pricing for new or existing facilities. Analyses range from preliminary supply/demand tests to comprehensive analysis of the market and existing and proposed competition.
Principle Valuation’s cost segregation studies for healthcare and seniors living clients identify and separate a facility’s short-lived and long-lived assets. This can potentially allow for-profit property owners to write down their assets more quickly.
Principle Valuation’s professionals have extensive experience as credible witnesses in Federal and state courts, as well as before the Provider Reimbursement Review Board. We have represented parties on the purchase and sale side of transactions, as well as on tax appeal matters.
Hospitals
Ambulatory surgery centers
Medical office buildings
Physician practices
Skilled nursing facilities
Assisted living facilities
Independent living facilities
Continuing care retirement communities