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Asked & AnsweredHow much is my company worth? Many healthcare service providers sell within a range between 3-5 x normalized EBITDA. That is to say a multiplier of EBITDA. This most commonly used formula is a pretax earnings multiplier that assumes an asset purchase where the seller keeps the cash and accounts receivable and is responsible for any liabilities associated with the company. Larger, more profitable companies can sell for a premium above the range while smaller, marginally profitable companies can sell for a discount below the range. Actual financial and operational data is required to do a genuine valuation. At American HealthCare Capital, we offer a FREE “no strings attached” preliminary valuation to any healthcare provider who wishes to investigate a divestiture. |