 |
 |
|||||
 |
 |
 |
 |
 |
 |
|
 |
 |
|||||
At some time, most doctors will need to determine the value of a practice for one of these reasons:
 |
Selling |
|
Divorce | |
Practice enhancement |
|
Buying |
|
Partnership |
|
Business plan development |
|
Bank loans |
|
Estate planning |
Professional practices differ from other business types and present unique challenges. The value of a professional practice is generally the sum of the physical assets and the intangible assets – which are typically the greatest contribution to the practice value. The intangible assets of a professional practice consist of two parts. The first part is practice goodwill and includes items such as location, office systems, policies, patient base, trained staff and patient records. The second part is professional goodwill and includes the physician's personal knowledge, experience and reputation.
A valuation provides critical information to all parties when a practice is being sold. During a partnership change, associateship leading to a buy-in, incorporation, re-financing, tax negotiations, financial and estate planning, probate or in a divorce settlement, valuations ensure that fair market value is used for all transactions.
Levels of Service
|
|
|
||||
This adjusted income statement will allow you to: |
|
|||||
| • | Show projections of increased revenues and changes in cash flow; |
• | Have an approximate value of the practice; |
|||
| • | Have a financial tool for management purposes; |
|||||
| • | Project future earnings potential; and |
• | Have the ability to project futrue earnings potential; and |
|||
| • | Develop a valuable document for SBA loan consideration. |
• | Determine financial trends. |
|||
| Because this is ballpark estimate, it should not be used in a buy or sell transaction |
||||||
|
|
|||||
This comprehensive level report gives you the information you will need to: |
If you expect a transitional event in the next five years (such as selling your practice, bringing in a partner or associate or even transferring the practice to a family member), this level of valuation is recommended. The Value Enhancement Report provides all the insight included in the Practice Valuation Report and, in addition: |
|||||
| • | Buy or sell a practice; |
|||||
| • | Evaluate relevant information such as the community demographics, efficiency of staff operations and any contracts which would be part of the sales transaction; |
|||||
| • | Document the financial condition of the practice; |
• | Makes recommendations for strengthening weak areas; |
|||
| • | Document the history of cash flow; |
• | Compares the current market position and financial information with industry standards; |
|||
| • | Document the history of profitability; |
|||||
| • | Project future earning potential; |
• | Provides knowledge helpful in increasing the sale-ability and the fair market value of your practice in the future; and |
|||
| • | Determine financial trends; |
|||||
| • | Write a comprehensive business plan; and |
• | Valuation planning will allow you to integrate the changes quickly due to our specific recommendations. |
|||
| • | Negotiate a fair price. |
|||||
About Us•Services•FAQs•Resources•Contact Us•Home
Circumference•6850 West 95th Street•Oak Lawn, IL 60453•Toll Free (877) 988-0911
