Case Studies

Enterprise Valuation

Client: Multi-Specialty Clinic, 2000

Uncertainty is Quantified in Study of Organization's Merger Value

Amongst hospitals and clinics, mergers were a popular strategic response to the fiscal constraints of managed care. But the very uncertainties that fuel merger talks are the same ambiguities that confound enterprise valuation.

This project identified the main sources of volatility in valuation and simulated a multitude of scenarios, reflecting variance parameters for critical inputs. The resulting confidence intervals surrounding the “point estimate” of valuation proved to be a significant and informative aspect of negotiations.