BV199-WEB - The Big Three in Healthcare: Buy-in/Buyout Agreements, Physician Compensation, and Private Equity "Market Data"
Category: Business Valuation
Continuing Education: 2
Registration
Please see the "Upcoming Classes" tab for class offerings and registration information.
Webinar Course Description
Valuation is part art and part science, but there is
always a risk that some of the art may be lost or not understood. One of the
more routine engagements an appraiser may encounter is to value a practice
pursuant to a buy-in or buyout agreement, whether it be due to an expected
retirement, death or disability, or marital dissolution where contract law is
relevant. Such an engagement can be significantly more complex than appears on
the surface. Use of physician compensation survey data is likely to distort the valuation as will failure to understand current "market data" from Private Equity deals.
Course Audience
The program is designed for experienced appraisers who
want to understand the nuances of valuing physician practices, whether for a buy-in or buyout, marital dissolution or third party sale.
NASBA and Continuing Professional Education (CPE) Credit
The American Society of Appraisers is registered with the National
Association of State Boards of Accountancy (NASBA) as a sponsor of continuing
professional education on the National Registry of CPE Sponsors. State boards of
accountancy have the final authority on the acceptance of individual courses for
CPE credit. Complaints regarding registered sponsors may be submitted to the
National Registry of CPE Sponsors through its website www.learningmarket.org.
CPE Credit: (2) Hours in Specialized Knowledge
Program Level:
Intermediate
Delivery Method: Group-internet based courses are approved for
CPE
Prerequisites: None
Advanced Preparation: None
Policies: ASA's
Refund and Cancellation Policy and ASA's Complaint Resolution Policy
Instructor Information
Mark O. Dietrich, CPA PC
Mark is a summa cum laude, Beta Gamma Sigma graduate of Boston University
where he also earned an MBA with high honors. He is Editor and Contributing
Author to the Business Valuation Resources/American Health Lawyers’ Association
Guide to Healthcare Industry Finance and Valuation 4th Edition, Editor and
Principal Author of BVR Guide to Physician Practice Valuation 3rd Edition; and
co-editor and contributing author to the BVR/AHLA Guide to Valuing Physician
Compensation and Healthcare Service Arrangements 2nd Edition. Mark served as
Chairperson of the American Institute of CPA’s (AICPA) National Healthcare
Industry Conference for 2012 and 2013. Mark’s career experience includes
working with numerous physician practices as a tax advisor, operational
consultant, designing and implementing compensation plans, negotiating managed
care and Medicare Advantage contracts on behalf of a primary care physician
network, serving as partner-in-charge of the audit of a tax-exempt faculty group
practice affiliated with a major teaching hospital, serving as expert on behalf
of both defendants and the government in qui tam actions, and performing
valuations on behalf of both medical practices and tax-exempt hospitals. When he
is not writing or researching some obscure healthcare industry topic, he does
valuation work and tends to his farm in Virginia.
No prerequisites for this course.
Agenda
The following topics are covered in this course:
- Understanding Buy-in and Buyout Agreements and their
impact on value;
- Different definitions of “fair market value” and whether any lack of
control or marketability discounts are to be considered;
- Determining replacement compensation versus “profits” to be included in
the valuation model;
- Assessing local market rates of compensation relevant to a practice
located in that market - no more "survey says.";
- Evaluating whether and to what extent private equity “market” data is
relevant; and
- Reconciling actual working capital to normal working
capital.
Learning Outcomes
Upon completion of this course,students will be able to:
- Analyze how the terms of a shareholders’ agreement or
operating agreement impact the level of value;
- Discuss how the local market of the practice determines the appropriate
compensation normalization adjustments – just because it plays in Peoria does
not mean it will play in Manhattan;
- Identify how Private Equity “Market” transactions reflect specific terms
from the buyer that are rarely applicable in a given valuation engagement, but
may influence perceived risk and the discount rate; and
- Decipher unique elements to consider in reconciling actual and normal
working capital – and what is “normal” anyway?