Has Obamacare Impacted Business Valuations In The Health Clinic Industry?

Sheridan Porter Blog

We’ve all heard about the ACA’s botched website rollout, the congressional hearings, and the concern over sign-up rates. But for business owners in the health clinic industry, the swirl of uncertainty has also translated into a significant erosion of their company’s market value.

The health clinic industry is historically characterized by low volatility relative to other industries. However, as the chart above shows, 2011 saw a lowering of premium and 2012 saw a negative premium.
This means that owners were selling businesses at less than what they would have typically obtained for the economics alone. In other words, no value was realized for location, contracts, growth, patronage, intellectual property, or other ‘special sauce.’
While 2013 was looking to be on track for a recovery in premium, uncertainty over Obamacare’s ongoing issues has once again seen premiums plummet in the most recent fiscal quarter. We’ll be interested to see what Q4 returns in light of the program’s rollout problems and subsequent political challenges.
If you’re also interested, we’d be happy to hear from you.