Your practice is always going to be worth more in your eye’s than anyone else. For the obvious reason being that you grew it with your passion, vision and hard work. But now you want to move on, so how do you value it.
The best answer to this is leave it to the experts.
Expert valuation advice is important because the valuation is based on factual information and an objective opinion.
Healthcare Practice Sales have provided valuations for healthcare practices across Australia and New Zealand for the last four years. So not only do we have the experience and skills but also have built up a database of practices sold that we can use as historical reference.
So how do we valueÂ it?
First we send out a checklist of information that we require. Once received the information is analysed by our accounts manager and usually followed up by a number of queries that will need to be answered. We don’t just take the information at face value. We need to be able to justify it.
The checklist includes:
List of chattels & stock including purchase price and date
- P&L statements for the last three financial years
- Patient Statistics – Active database, # of new patients each week and so on
- Lease Agreement
- Floor plan if available
Once the information has been analysed the team then take the following elements into consideration before preparing a valuation report.
These elements include:
- Patient Numbers
- New Patient Numbers
- Comparable Sales
- Marketing in place
- Location and demographic
The whole process takes approximately ten business days from receipt of all the information, but the result is a sound valuation of your practice with a report.