Business Case Studies & Business Publications

Mary Washington Pediatrics

Schill, Michael J.

Case

Mary Washington Pediatrics

Schill, Michael J.

F-1877 | Published March 27, 2019 | 5 pages Case

Collection: Darden School of Business

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Product Details

This case follows the 2017 acquisition valuation of Mary Washington Pediatrics in Northern Virginia by two pediatricians, Natalia Juarez and Kirsten Atwood. The case provides a simple context for discussing approaches for enterprise valuation, including discounted cash flow (DCF) and transaction multiples methods. Students are encouraged to critique a financial forecast for the practice using the current performance of the target company and other comparables. The case has been used in a course specific to medical professionals but could be used by any group seeking an introduction to valuation mechanics.

The case affords opportunities for the instructor to meet any of the following teaching objectives: Introduce business valuation in a health care context. Compare and contrast a multiples-based business valuation with a DCF-based business valuation. Identify key assumptions and value drivers in a valuation context. Consider the benefits and costs of debt financing for an enterprise.