MHA increases valuation of New York endoscopy center by 50%, finding the ideal strategic partner for the Facility.

After careful evaluation of the regulatory and competitive landscape, MHA recommended an innovative strategy that accomplished the goals of the KBEC members. The structure involved an administrative service organization, which owned all of the ASC’s nonclinical assets and provided certain services. The endoscopy center itself remained under the ownership and control of the physician partners. This approach had the effect of expanding the pool of potential purchasers significantly by creating a separate business that could be owned by nonphysician investors, as required under New York State law.

To execute this complex strategy, MHA conducted its due diligence and comprehensive data gathering process. MHA’s analysts then reviewed and adjusted the facility’s financial statements to accurately reflect an enhanced value to potential investors.

MHA developed a confidential memorandum and other marketing materials to inform investors about the opportunity, including outlining its key personnel, operations, growth factors, and financial performance. MHA then created a list of prospective investors derived from prior purchasers with whom its Principals have experience, as well as conducted research on firms that have invested in a similar industry or opportunity.

MHA engaged with potential investors after conducting initial outreach, answered questions about the endoscopy center, shared supporting financial documentation about the opportunity, and identified a pool of interested parties.