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Practice Valuation


What is your practice truly worth?

You have worked very hard to build up a successful Medical Practice and it is wise to know the Fair Market Value of Your Practice. On the other hand if you are acquiring a new practice it is essential to have the valuation done for your targeted acquisition and therefore it is important to work with an independent Practice Valuation Expert who has served many clients.

Factors to be considered to valuate a practice:

            · Age of practice

            · Practice Type and services offered

            · Total Annual Gross Production and Collection

            · Number of Active Charts

            · New Patients Per Week

            · Trend of Annual Gross Production and reason for decline or increase

            · Seller Discretionary Cash Flow, SDC

            · Fee Structure, and Fee Schedule

            · Percentage of Practice Income from Capitation/P.P.O. Patients

            · Owner production, Associate production, Hygiene Production

            · Commission or Pay Rate to Associate, Hygienist, and Office Manager

            · Practice Days Per Week and number of days owner works in weekly and annual bases

            · Average Daily operative Collected Production

            · Projection of Practice Gross Production

            · Owner's Family Members Working at the Practice

            · Lease Terms

            · Current Fair Market Value of Clinical and Office Equipment, Computer software, and FF&E

            · Digital Networking, and paperless set up

            · Practice Reputation

            · Strength and Method of Marketing and Advertising

            · Restrictive Covenant Contract from Associate working at Practice

            · Web Presence

            · Demographics and Population

            · Purpose of Valuation

            · None Essential Practice Expenses


In addition to the aforementioned factors there are various methods used to valuate a practice:

            - Asset Valuation

            - Multiplier of Net Production

            - Multiplier of Cash Flow

            - Capitalization

            - Comparison

In many cases depending on opinion of our professional appraiser combination of some of these methods are used to come up with Fair Market Value.

If you need to know the value of your practice for exit strategy, Family issues, partnership dissolution, Acquisition, or litigation support, please for a free and CONFIDENTIAL consultation.