Many dentists are unsure of the current market value of their practice. Purchasing or selling a practice is a huge decision. It is therefore critical that the most qualified valuation experts are brought in for these valuations. Dental CPA employs sophisticated valuation methods to provide you with the most comprehensive, accurate assessment of the fair market value of the dental practice you would like to purchase, or the current dental practice wish to sell.
Why Valuations are Important
Determine Fair Market Value
Value & Liability Assessment
Avoid Costly Mistakes
Overall Health of the Practice
Learn How to Increase Practice Value
Preparation for Your Practice for Transition
Ensure You Receive Maximum Value
Determine Retirement/Exit Strategy
“We look after your practice’s financial health, giving you more time to concentrate on client care and practice growth”
Appraisals involve examining key practice information to help determine the market value. Some of these key pieces of information include:
Gross & Net income
Payment Types Accepted
Active Patient Database
Number of New Patients Monthly
Patient & Area Demographics
Practice Culture & Goodwill
Why Might You Need a Formal/Written Valuation?
Understanding Your Practice Value
Peace of Mind
Beware of “Rule of Thumb” Practice Evaluations
Some practice consultant offering a free appraisal or valuation will use a Rule of Thumb method, which uses limited information and can result in a much less substantive value. Typical rule of thumb verbiage might be:
The practice is worth 70% of gross revenue
The practice is worth one times net income.
Rule of Thumb valuations do not usually factor in technology, overhead, client base, and other highly pertinent information to determine full value.
Our Dental CPA firm provides dental professionals with a wide variety of custom services to enable dentists to excel in the dentistry business. It’s vital that dental businesses are well established, so that personal and business success may be accomplished in an effective manner and that potential risks are recognized, minimized, and promptly dealt with.