Establishing an accurate practice valuation is a necessity when
- selling a practice
- establishing a buy-in price
- securing funding for expansion
- consolidating debt
- for use in the divorce process
- for use in death and estate planning purposes
In most cases lending institutions and the courts require a formal valuation to make their decisions.
If you are contemplating selling your practice within the next two years, now is the time to have the value established. Establishing the practice value now and updating it on an annual basis aids in the transition process and is valuable in your financial and estate planning.
Transition Resources, Inc. has been retained to perform valuations of dental practices throughout the United States and Canada. We use four different approaches in establishing a value; establishing a high and low value of each approach and then average the highs and the lows to arrive at a very accurate and fair value. Transition Resources, Inc.’s valuations are readily accepted by lending institutions as they provide the necessary information to enable a buyer to secure funding.
Realizing a practice’s value is established by more than just numbers, Transition Resources, Inc. takes into account a number of important, intangible assets. Some of these intangibles are; net profit, location, new patient growth, active patient number, accounts receivable, equipment, staff retention, office appearance, computer utilization, recare program, treatment provided, lease and OSHA compliance. In a fee for service practice these intangibles have definite value and must be considered.