For most physicians, there comes a time in the life of their practice where they start to consider the next steps. They may be considering retirement or possibly taking on an associate. At this stage practice valuations are crucial. A Sarasota practice is worth what someone is willing to pay for it. Selling a medical practice is different than selling any other business. But like every other business, it must first be valued. A practice assessment helps prove the financial condition of the practice whether it is a solo practice or a group practice.
Building a medical practice is personal and a labor of love. The practitioner knows that it has value, however, attaching a dollar value to the solo practice can be a sensitive subject. So, it is crucial to hire professionals to help provide practice valuations of your Sarasota medical practice. Traditionally, the appraisal of the individual medical practice is based on the historical performance of the business as a predictor of future performance. Earning and profits must be evaluated, not to mention debt-free cash flow.
By way of contrast, the assessment of a group practice involves forecasting the performance of the business. It is done on a prospective rather than a historical basis.
Further Considerations in Medical Practice Valuations
There are additional factors that affect the value of the business such as:
- Practice size
The best approach to take in valuing the practice, namely asset, income, or market approach.
Consideration of risks of the practice like fluctuations in medical policy, dated technology, and competition.
Other reasons to think about a professional practice appraisal include:
- Tax planning
- Acquiring another practice
- Bringing in a new associate
In summary, when conducting practice valuations in Sarasota there are many aspects of the medical practice and the medical profession to analyze. Hiring experienced consultants to do the heavy lifting for you is important.
Choosing a Professional Assessor
Accelerated Billing is grounded in unwavering values. We guarantee expertise, customized solutions, personal service, transparency, and excellence We serve our customers with the use of advanced decision tools and a broad knowledge base. After we provide a assessment of your Sarasota medical practice, you can confidently negotiate the best price and transaction terms for your given situation.
Contact us today for a free consultation regarding practice valuations. We are available Monday -Friday 8:00a.m.-5:00p.m. by phone at 727-781-8460 or by connecting with us online.