Why You Should Sell Your Ambulatory Surgery Center (ASC)
Your Best Move
You’ve probably heard it in the news or from your coworker next to you: Healthcare reform is coming. So far, 2016 has ushered in a wave of uncertainty, especially in the field of healthcare. Although the repeal of ACA has not seemed likely with the new Trump administration, healthcare workers should be wary of the possibility. Physician owners of ASCs are no different.
The good news is, rather than fearing for job security and prices, owners of ASCs are in a good position to profit from this uncertainty. According to the IBIS World Industry Report on Ambulatory Surgery Centers, published in January 2017, “healthcare reform is expected to have a negligible effect on the industry, due to ASCs needing to submit quality and cost data to secure Medicare and Medicaid reimbursements.” All in all, ASCs present a more stable investment for buyers, setting them up for bigger opportunities in the near future.
Why Sell ASCs?
The reasons are simple: ASCs are a growing trend and are valuable investments that benefit both sides of the transaction.
Acquisitions are in high demand due to the macroeconomic trends and buyers’ need to exhibit growth within their portfolios. Physician ASC owners can capitalize on this highly competitive market and receive excellent value in exchange for a share of the asset they have worked so hard to build. Additionally, because the market is so competitive, buyers also bring management services offerings that increase value going forward.
Physician ASC owners who pass on this opportunity to sell to a management company or hospital system will eventually find themselves in a very difficult situation, facing a tough choice: selling at a diminished price or shutting down the ASC entirely.
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This post is for informational purposes only and does not constitute an offer, invitation, solicitation, or recommendation to buy, sell, subscribe for, or issue any securities. While the information provided herein is believed to be accurate and reliable, 127 Capital, LLC (“Physicians First”) and Ashland Securities, LLC make no representations or warranties, expressed or implied, as to the accuracy or completeness of such information. All information contained herein is preliminary, limited and subject to completion, correction or amendment. It should not be construed as investment, legal, or tax advice and may not be reproduced or distributed to any person. Certain Principals of Physicians First are registered representatives of Ashland Securities, LLC Member FINRA, SIPC. Physicians First and Ashland Securities, LLC are separate and unaffiliated entities. Securities and Investment Banking Services are offered through Ashland Securities, LLC.