Interesting Medical Business Valuation for Estate and Gift Tax Purposes

Harvest recently completed a business valuation of an urgent care medical business for estate and gift tax purposes in the Mid-Atlantic region.  The medical business operated over 20 urgent care facilities and was growing quickly with a significant number of new units projected to come online over the next several years.  The organizational structure of the entity was quite complicated with two partners with very different backgrounds and future plans for the business.

The valuation started with a review of criteria specified in Revenue Ruling 59-60.  Reviews included the overall economy, the local economy, trends in the medical field including potential ACA changes.   The business itself was reviewed.  There had been several internal transactions that were analyzed.  Individual unit profitability was assessed.  Detailed projections for 3 years were provided and analyzed for reasonableness and likelihood of occurring.  Public and private comparables were reviewed.  In the end all of this was used to calculate an appropriate rate for discounting the cash flow projection.

Marketability and lack of control discounts were appropriately applied.    This medical business valuation we a complex business valuation carefully and accurately put together by the professionals at Harvest.  If we might be of service to you, please click to leave a message.