A practice valuation agency is a beneficial partner in establishing the worth of your Sarasota based medical practice. An appraisal determines the economic desirability of the practice. This information is important in cases such as sale, taxation, expansion, dissolution, or bringing on a partner, to name a few. Accelerated Medical Billing is an expert in this area; therefore, our skill allows you to make a hassle-free, educated decision regarding the future of your business.
If You are Purchasing a Medical Practice
Thousands of medical practices are bought and sold every year. There may be several reasons for purchasing, partnering with, or buying into an established practice. For example, a new doctor or a doctor moving into the Sarasota area will not have to start building their medical practice from scratch. Reputation, referrals, and patients are already in place. Time, money, and above all, effort will be saved. If you are considering purchasing a practice, then there is some due diligence to conduct such as:
- Location of the practice
- Management and staffing
- Business systems in place
- Hospitals in the area and their associations with independent practices
When discussing value with the selling physician, consider whether the price was derived by working with a medical practice valuation agency.
If You are Selling Your Sarasota Practice
Before hiring a professional assessor, there are things that you can do, as the seller, to make your practice appealing. By way of example:
- Have your books in order
- Put automated business systems in place
- Create a management system within your team or staff
The Benefit of a Practice Valuation Agency
Determining the value of a medical practice is not an easy process. There are many methods of assessment, metrics, techniques, and multipliers used in determining the worth of the practice. One of the reasons to hire a medical appraisal professional is so that you can have peace of mind. You can leave the complicated details in the capable hands of our experienced appraisers. Working with a practice valuation agency allows you to focus on your area of expertise, that is running your business and caring for your patients.
Because a Sarasota medical practice possesses unique characteristics, it cannot be valued in the same way a non-medical business would. There are certain methods of appraisal that would not be appropriate for a medical business. An expert is best suited to determine the differences, and then decide which methods to use. For example, our practice valuation agency consultant will determine whether to use the
- market method
- cost method
- debt-capacity, or
- capitalization-of-earnings method.
Types of value
In appraising your Sarasota practice, a specialist will look at several value types, such as:
- Working capital value (tangible assets less the liabilities)
- Owner-equity (tangible and intangible assets less the liabilities)
- Business enterprise value (tangible and intangible assets, and the working capital)
An intangible asset is a credit to your business that is not physical in nature. Such an asset, unique to medical practices, is goodwill. Goodwill is the expectation that the existing Sarasota patients will continue with the practice after the sale. Tangible assets are physical and measurable resources. Such assets include equipment, furniture, and building, not to mention cash, contracts, and agreements.
Multiples assess the opportunity, risks, and rate of return. There are many factors that influence multiples including the condition of the building, location of the practice, existing business systems, staff, services, referral systems, not to mention revenue streams, and profitability.
Choosing Accelerated Medical Billing as Your Practice Valuation Agency
There are so many factors to consider when accurately valuating your Sarasota medical practice. Our specialty is supporting those in independent practice. Therefore, you can be assured that we will give your practice the personal service it deserves. We understand that it can be tedious and confusing, so let our certified professional can get the job done for you. We will always communicate with you every step of the way.
Visit our website for information on other services we offer our valued independent medical practice partners.