Does anyone know how to find EBITDA multiples for LMM healthcare?

by an member from University of Pennsylvania - The Wharton School

2 years ago

I am currently working on the acquisition of a LMM healthcare facility. After looking through some equity reports, I found mixed answers. Are there any reliable sources that I could use to make such a valuation? Thanks.

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searcher from Northwestern University - Kellogg School of Management

Agree with Greg's comment, there is a fairly large disparity between types of healthcare companies (i.e. different business models) and that drives valuation. If you have the resources, check out GF Data (https://gfdata.com). If you're looking for a "scrappy" way to get insight, look at some of the middle market investment banks that publish quarterly health care updates on their website. Their public comps section will give you an idea of where the public companies trade (obviously top of the range), then go to small healthcare focused-brokers that list companies online with a purchase price (i.e. can gather EV / EBITDA multiple). That will allow you gather close to the bottom of the range (small brokers listing for sale) to the top of the range (public companies). Feel free to message me if you have questions.

2 years ago | like reply | 0 likes

investor from Harvard University - Harvard Business School

The answer varies widely depending on the size of the asset and the sub-category within healthcare. Happy to discuss if helpful -- --@----.com

2 years ago | like reply | 0 likes

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