Whether you’re ready to sell your practice soon or just want to get an idea of what it’s worth, a practice appraisal is the best place to start. But what does a practice appraisal entail? The team at Crossroads Healthcare Transitions explains the process.
What is a Healthcare Practice Appraisal?
A practice appraisal involves finding out what your practice is really worth. This can help you test the market and see if now is the right time to find a buyer for your practice. Appraisals allow you to take a look at your practice from a new angle — as a seller. There are multiple factors that are looked at to determine the fair market value of your practice. You can see the strong points, as well as where your practice may need some work to be attractive to buyers.
The Appraisal Process
Appraisals can be tricky for the seller. Your practice is your baby, something you’ve brought up and are attached to. It can be hard to be objective in looking at your practice and determining what may need work to make it more attractive to potential buyers. It’s easy to believe that your practice is perfect and not see areas that could be improved.
The goal when you’re selling your practice is to make sure that other people see the value in it that you do. As your financial advisors and CPAs, Crossroads aims to help you do that. All assets are going to be considered in the appraisal process. We want to make sure that you’re getting everything you deserve after years and years of hard work.
There are multiple factors to be considered when determining the fair market value of your practice. These include:
- Both tangible and financial assets (think furniture, cash, retirement plan contributions, etc.)
- Patient accounts receivable
- The location of the office building, its value, and profitability
- Goodwill and tangible assets (things like the recognition of the brand name and good relationships with employees and patients)
Though there are a lot of factors to consider, it’s important to try not to be overwhelmed by all of the information. A professional broker with a dental CPA firm is extremely helpful as you navigate these new waters. Past tax returns and on-site assessments are necessary to establish more data and make sure that numbers are accurate.
At Crossroads, we want to help you make sure you’re getting the maximum practice value for a potential sale. We know the tools to help you get an accurate assessment of your practice to make sure that the numbers are solid. We’ll give you an honest recommendation on whether you should sell or wait depending on how the market looks.
Get Your Practice Appraised Today
If you’re thinking to sell in the near future, a practice appraisal is a great first step. Schedule a call online to get started.