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Valuing Certificates of Need: FMV Primer

We are pleased to announce that BuckheadFMV has published a new primer on valuing certificates of need (CONs) for healthcare services and facilities.

The purpose of the primer is to outline the framework we use to analyze CONs from a fair market value perspective to help attorneys, hospitals and health systems, physician groups, and other healthcare providers with transactions involving CONs.

CONs may need to be valued in a variety of circumstances, including change of ownership, disputes, financial reporting (purchase price allocations for M&A), and contract buyout provisions. There is no single formula or rule of thumb that ensures that the dollar value placed on a CON is FMV (like $300k per CON or 15% of business enterprise value). Instead, as with any intangible asset, the CON should be reviewed from several perspectives, each of which is based on economic concepts drawn from the three traditional approaches to valuation.

Some of the key variables that create this variance across CONs include:

  • State Statute and Regulations

  • Scope of CON

  • Historical Approval Probabilities and Review Times

  • Likelihood of Application to be Contested

  • Existing Compensation

  • Local Demographics and Demand for Services

Visit our Shop for more resources.

If you would like valuation assistance related to CON valuation, please contact Darcy Devine at


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