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Journal of Humanities, Arts and Social Science

ISSN Print: 2576-0556 Downloads: 470942 Total View: 3620969
Frequency: monthly ISSN Online: 2576-0548 CODEN: JHASAY
Email: jhass@hillpublisher.com
Article Open Access http://dx.doi.org/10.26855/jhass.2024.06.025

Analyzing U.S. Private Equity’s Acquisition of Nursing Facilities: Financial Modeling in Healthcare

Yu Cheng

Columbia University, New York, USA.

*Corresponding author: Yu Cheng

Published: July 2,2024

Abstract

In order to comprehend the U.S. Private equity's influence on nursing facilities, financial modeling is a good metric to assess facilities' financial health and fundamentals. To achieve this, I utilize Discounted Cash Flow Models (DCF) and Leveraged Buyout Models (LBO), along with various financial valuation models. The financial fundamentals, market trends, and market sentiments of companies can indicate their operational and financial sustainability. The objective of this project is to gain insights into how different valuation models and methods can forecast a company's financial health before and after the private equity (PE) acquisition. The outcomes of this project demonstrate a correlation between financial modeling and fundamental analysis in analyzing skilled nursing facilities and their relationship with Private Equity sponsors. These results were obtained through the implementation of financial valuation models to make predictions. The financial data parameters were analyzed using a genetic financial modeling method, considering factors such as revenue, expenses, net operating income, earnings before interest, taxes, depreciation, and amortization (EBITDA), enterprise value, etc. Results were obtained after an extensive optimization and analysis process, involving approximately 200,000 data points, conducted over a dura-tion of 200 hours.

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How to cite this paper

Analyzing U.S. Private Equity's Acquisition of Nursing Facilities: Financial Modeling in Healthcare

How to cite this paper: Yu Cheng. (2024) Analyzing U.S. Private Equity's Acquisition of Nursing Facilities: Financial Modeling in Healthcare. Journal of Humanities, Arts and Social Science8(6), 1449-1455.

DOI: http://dx.doi.org/10.26855/jhass.2024.06.025