Financial Reporting/Business Valuation Projects

Financial Reporting – Allocation of Purchase Price/Impairment

  • Valuation for financial reporting, including the allocation of the purchase price to the real estate, equipment, CON’s, trademarks, Medicare licenses and other intangible assets for a publicly traded healthcare company with 62 hospitals in 29 states
  • Valuation of a regional hospital and its related entities for financial reporting based on an Affiliation Agreement with a larger hospital system
  • Purchase price allocation (PPA) of a healthcare management staffing and outsourced services company.  Assets included in the PPA were trade names, non-compete agreements, customer relationships, and personal property and equipment
  • PPA of a portfolio of independent living properties.  The allocation was by property among the land, furniture and equipment, building, and land improvements
  • PPA of a portfolio of three skilled nursing facilities and one assisted living facility.  The allocation was by property among the land, furniture and equipment, building, land improvements, and Certificate of Need
  • PPA of a 40-bed surgical hospital.  Assets included land and improvements, buildings, equipment, non-compete agreements, and a minority interest in the company which owns the hospital building
  • PPA of a 15-pediatrician practice with the allocated assets of supplies, personal property and equipment, trademark, non-compete agreements, medical records, and workforce

For more information on Financial Reporting – Allocation of Purchase Price/Impairment, click here.

Business Enterprise/Stockholders’ Equity Valuations

  • Fairness opinions – Prepared independent fairness opinions for three regional hospitals being acquired by a public healthcare company that required approval of the State Attorney General.  Included presentations to the board of directors of the individual hospitals and attendance at the State’s review committee
  • Valuation of a minority equity interest for acquisition of an ambulatory surgery center by a hospital system
  • Valuation of a 30% equity interest of a surgery hospital for purposes of a potential sale
  • Valuation of the joint venture partnership interest on a majority and minority basis of an imaging center for potential acquisition by the other partners
  • Valuation of the stockholders’ equity for corporate restructuring of an entity which owns senior nursing facilities and leases the real estate
  • Majority members’ equity value of real estate holding company, of which the primary asset was a medical office building
  • Valuation of the minority members’ equity of an acute care hospital which also provides surgical services and specializes in bariatric, orthopedic, and spine surgeries for the potential offer of members’ interests in the hospital
  • Fairness Opinion prepared for a 111-bed acute care hospital attempting an affiliation and in need of approval from the state Department of Health due to the Certificate of Need review process
  • Valuation of the fair market value of a Medicare License and provider number for a 30-bed Long-Term Acute Care Hospital (LTACH)
  • Valuation of the stockholders’ equity for potential sale of a minority interest in a company which owns two LTACHs and LTACH licenses in excess of those it utilizes
  • Valuation of the business enterprise value of an insurance entity providing services to Medicaid patients for the potential conversion from a for-profit status to a not-for-profit status
  • Valuation of the minority stockholders’ equity of a full-service imaging center providing MRI, CT scan, ultrasound, and x-ray imaging and owned by the hospital and a radiology group for potential sale to additional owners of the radiology group
  • Valuation of a minority interest in a joint venture rehabilitation hospital in the process of construction for the potential sale to the majority owner
  • Valuation of the stockholders’ equity for estate planning of a company which included valuing a home healthcare business and an operator of nursing homes

For more information on Business Enterprise/Stockholders’ Equity Valuations, click here.

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Our clients have used Principle Valuation for valuations for purchase and sale transactions, compensation relationships, and support for tax purposes. They do straightforward and intelligent work, and are very responsive.

Scott Becker, Partner, McGuire Woods

We selected Principle because of their experience and reputation in the market. They are very knowledgeable about the industry, and particularly HUD financing. They were very thorough and hit their deadlines. Their appraisal went through HUD with no issues, which also made the borrower very happy.

Ken Buchanan, Senior Vice President and Chief Underwriter (Eastern Region), Walker Dunlop

Principle Valuation provides excellent valuations for ongoing healthcare enterprises, as well as placing values on the individual assets. They are very timely, reliable, have a solid understanding of the regulatory implications of their work, and are authoritative in the way they present their information.

Mike Anthony, Partner, McDermott, Will & Emery

Principle Valuation is far superior to any other valuation firm we have worked with. They are knowledgeable about businesses, real estate and equipment. And their reports are always right the first time.

Ken Doran, President and CEO, Spectrum Heatlh Partners

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