What is Business Valuation and Why Would I Need One?

In the highly regulated and scrutinized healthcare industry, a quality business valuation of your healthcare enterprise or interest can not only provide you invaluable insight into the historical operations and expected future economics of your business, but it also can offer you peace of mind that, in the event of a transaction, you have operated within the law.

‍Business valuation, in the most basic sense, is the act or process of determining the value of a business enterprise or an ownership interest within an enterprise. The valuation of a business can occur for a multitude of reasons. Although not an exhaustive list, most business valuations are for the following purposes:

• gift/estate tax needs
• marital dissolution
• dispute resolution
• management planning
• establishing the basis for debt financing
• financial reporting
• in connection with a transaction

At Coker Group, we are engaged to perform business valuations for all these purposes. However, the vast majority of our business valuation engagements are related to a potential or pending transaction or in the context of post-close financial reporting work (including purchase price allocations and goodwill impairment testing). Coker has industry-leading experience performing business valuations on all healthcare entity types across the United States. This level of expertise allows us both to provide our clients with a quality work product and also invaluable insight into the trends occurring within the industry. More importantly, by leveraging our technical business valuation experience and our unmatched industry knowledge, we translate the changes in the healthcare industry into the value impact they may have on your business. Contact us today for valuation assistance for your organization.