DOTmed Home MRI Oncology Ultrasound Molecular Imaging X-Ray Cardiology Health IT Business Affairs
News Home Parts & Service Operating Room CT Women's Health Proton Therapy Endoscopy HTMs Mobile Imaging
SEARCH
Current Location:
>
> This Story

starstarstarstarstar (1)
Log in or Register to rate this News Story
Forward Printable StoryPrint Comment

 

Business Affairs Homepage

Dr. Ira Jacobson NYU Langone Health hires new director of hepatology within the Division of Gastroenterology.

Medica to acquire Mayo Clinic Health Solutions May improve access for patients with complex conditions

Study proposes health care model for rural communities Emergency departments should connect patients to primary care doctors

Siemens Healthineers collaborates with Houston Methodist Hospital Will provide advanced angio, MR, CT, molecular imaging and ultrasound technology

Dotty Bollinger Former CEO of Integrity Healthcare Advisors named managing partner for Healthcare Strategy at GPB Capital

J. Michael Bruff Varian announces new VP of Investor Relations

Did a small Missouri hospital haul in $90 million in 'questionable' bills? Auditor describes facility as 'shell organization' for labs across the country

Mike Imagawa The Cortec Group, Inc. names managing director, SE Asia

Intuitive Surgical enters licensing agreement with JustRight Surgical Merging laparoscopic tools with robotic surgery

Improving radiology through feedback and metrics Imaging professionals need to be heard

Capital deployment: the 6 main pillars that drive valuation in health care

By Andrew Colbert
From the December 2016 issue of DOTmed HealthCare Business News magazine

Wouldn’t we all love to sell our company for 20x revenue?
There is nothing more fun than talking about that huge exit multiple that XYZ company just paid. However, too often today, health care industry chatter is focused on the multiple itself and not the unique attributes of the target and the buyer’s specific situation. These impressive outcomes often distract attention from the fundamental attributes that truly create value. A company is worth the cash flow it generates. Long-term business value is created not by building a nice storefront window, but by building a set of unique products and services that are in high demand and capable of delivering both growth and profit.

It is important not to construct a business with the exit in mind, but to build a solid company with strong fundamentals. There will never be a shortage of buyers for good companies, especially in the health care space, which is made up of so many subsectors such as physician practices, hospitals and health systems, payers, information technology, analytics, diagnostic therapeutic and biomedical companies, and so forth. The list is massive and represents nearly 20 percent of our GDP.

Story Continues Below Advertisement

New OEC 9800 LCD upgrade available! Call today: 800-400-7972

Easy install retrofit kit! Extend the life of your OEC system by upgrading the CRTs to dual 2MP LED displays mounted on an articulating arm. Priced competitively & optimized for do-it-yourself installation in under an hour.



Focus from the get-go on the foundational components is critical to building a strong company that will be in high demand. There are six core pillars that are critical to driving enterprise value: strategic organization; technology platform; industry dynamics; “best of breed” perception; financial performance; and management team.

Pillar one: Strategic organization
The foremost pillar is strategic organization and professionalizing. We believe that at least 20 percent of a company’s value is tied specifically to the external appearance. Regardless of what’s inside, it’s a lot harder to sell your house when the outside paint is peeling and the front lawn is covered with weeds. Generically we might just call this good housekeeping. This can cover a wide range of intangibles that are essential to smooth operations and future transaction success.

For instance, proper HR policy documentation, secure confidentiality protection regarding source code and other intellectual property, accurate and complete contract databases that indicate when renewals are coming up and a host of other similar data and documentation. A company needs to be able to provide appropriate information and proper documentation at the press of a button.

For example, one area often overlooked is strategic tax management. Many companies underestimate state tax compliance, which can become problematic. Categorization of employees is another complex area. Younger companies sometimes see an advantage in 1099 status, but this can become problematic if the IRS believes the individuals should be W-2 employees. If such elements are not in place, a company can look unsophisticated when a larger corporation or investor assesses its policies and procedures. These are all things that a company can address proactively from its inception, and thereby greatly enhance its valuation from startup to exit.
  Pages: 1 - 2 - 3 - 4 - ... >>

Business Affairs Homepage


You Must Be Logged In To Post A Comment

Advertise
Increase Your
Brand Awareness
Auctions + Private Sales
Get The
Best Price
Buy Equipment/Parts
Find The
Lowest Price
Daily News
Read The
Latest News
Directory
Browse All
DOTmed Users
Ethics on DOTmed
View Our
Ethics Program
Gold Parts Vendor Program
Receive PH
Requests
Gold Service Dealer Program
Receive RFP/PS
Requests
Healthcare Providers
See all
HCP Tools
Jobs/Training
Find/Fill
A Job
Parts Hunter +EasyPay
Get Parts
Quotes
Recently Certified
View Recently
Certified Users
Recently Rated
View Recently
Certified Users
Rental Central
Rent Equipment
For Less
Sell Equipment/Parts
Get The
Most Money
Service Technicians Forum
Find Help
And Advice
Simple RFP
Get Equipment
Quotes
Virtual Trade Show
Find Service
For Equipment
Access and use of this site is subject to the terms and conditions of our LEGAL NOTICE & PRIVACY NOTICE
Property of and Proprietary to DOTmed.com, Inc. Copyright ©2001-2017 DOTmed.com, Inc.
ALL RIGHTS RESERVED