How a Compliance Program Raises Your Valuation (with Jerry Chang)

Many healthcare executives often treat compliance simply as a cost line. Jerry Chang, Managing Director and Partner at Stout, sees it differently from the valuation seat. On this episode of The Compliance Advantage, host Ross Ronan and Jerry walk through how a strong compliance program changes what a business is actually worth. Jerry has spent about 30 years providing valuation and financial advisory services to healthcare provider entities, and he has testified over 20 times as an expert witness. He breaks down valuation advisory into three core functions: measuring, protecting, and recovering value, and discusses how risk perception results in a higher discount rate or a lower multiple when a compliance program looks weak. Ross and Jerry trade real diligence stories and land on a simple rule for optimizing deal value: go slow to go fast. In this episode: Why some executives still see compliance primarily as a cost, and what they miss The three functions of a valuation in a compliance context: measuring, protecting, and recovering value How perceived risk results in a higher discount rate or a lower multiple Fair market value vs. commercial reasonableness, with an example Why sell-side compliance diligence protects your price before a buyer asks On this episode, Jerry shows Ross how compliance moves real numbers in a deal, from fair market value and commercial reasonableness to the diligence findings that impact perceived risk and value.   / jerrymchang