Valuation Multiples Paid For Controlling and Minority Interests in Physician-Owned Hospitals

Here are the valuation multiple paid and the percentages of respondents that received that multiple for controlling and minority interests in a physician-owned hospital, according to HealthCare Appraisers' Healthcare Transactions 2009 Year in Review.

Multiples paid for controlling interests

• Less than 4.0x — 9 percent
• 4.0x-4.9x — 19 percent
• 5.0x-5.9x — 27 percent
• 6.0x-6.9x — 27 percent
• 7.0x-7.9x — 9 percent
• 8.0x or higher — 9 percent

Multiples paid for minority interests

• Less than 2.0x — 17 percent
• 2.0x-2.9x — 8 percent
• 3.0x-3.9x — 13 percent
• 4.0x-4.9x — 37 percent
• 5.0x-5.9x — 17 percent
• 6.0x or higher — 8 percent

To receive a copy of the 20-page Healthcare Transactions 2009 Year in Review, please contact HAI at info@hcfmv.com or (561) 330-3488 or download a PDF version at www.HealthCareAppraisers.com.