Coral Gables, Florida-based Preferred Medical Plan retained Wells Fargo & Co. for an auction process that is currently in its second round bids. The HMO is privately held and retained the bank earlier this year. One banker noted that the provider has an Ebitda around $30 million and for businesses of this type a multiple could be anywhere from 7 to 8 times Ebitda, to the mid-to-upper teens. Based on these multiples, a sale could garner a price between $210 and $510 million. How a company stacks up in the space takes into account the membership mix as well as what counties they serve. This is because these two factors will help to determine what type of government contracts are available. Preferred Medical was established in 1972 and is Florida’s oldest independently owned HMO. It provides support to 800 primary care provider locations and 1,700 specialist locations, according to the company. Preferred specializes in arranging healthcare coverage for working families and individuals in Florida’s Miami-Dade, Monroe and Broward counties. The plan provides 11 hospitals in the counties it serves it added three locations in Coral Gables, Downtown Miami and Miami Lakes this year.
Subscribe to TheStreetTV on YouTube:
For more content from TheStreet visit:
Check out all our videos:
Follow TheStreet on Twitter:
Like TheStreet on Facebook:
Follow TheStreet on LinkedIn:
Follow TheStreet on Google+:
source
