Welcome to the Podiatry Arena forums

You are currently viewing our podiatry forum as a guest which gives you limited access to view all podiatry discussions and access our other features. By joining our free global community of Podiatrists and other interested foot health care professionals you will have access to post podiatry topics (answer and ask questions), communicate privately with other members, upload content, view attachments, receive a weekly email update of new discussions, access other special features. Registered users do not get displayed the advertisements in posted messages. Registration is fast, simple and absolutely free so please, join our global Podiatry community today!

  1. Everything that you are ever going to want to know about running shoes: Running Shoes Boot Camp Online, for taking it to the next level? See here for more.
    Dismiss Notice
  2. Have you considered the Critical Thinking and Skeptical Boot Camp, for taking it to the next level? See here for more.
    Dismiss Notice
  3. Have you considered the Clinical Biomechanics Boot Camp Online, for taking it to the next level? See here for more.
    Dismiss Notice
Dismiss Notice
Have you considered the Clinical Biomechanics Boot Camp Online, for taking it to the next level? See here for more.
Dismiss Notice
Have you liked us on Facebook to get our updates? Please do. Click here for our Facebook page.
Dismiss Notice
Do you get the weekly newsletter that Podiatry Arena sends out to update everybody? If not, click here to organise this.

Valuing a business?

Discussion in 'Practice Management' started by Adapod, Jun 17, 2014.

  1. Adapod

    Adapod Welcome New Poster


    Members do not see these Ads. Sign Up.
    Hi guys

    I currently own a very busy purpose built practice with a large client base, 5 care homes, premises(on a long secure lease) including waiting room, patient w/c and allocated patient parking and all equipment and sundries based in a popular seaside Cornish town with no local competitors.

    I need to sell due a change in personal circumstances and need to consider a selling price but I am unsure where to start with this?

    Can anyone guide me on where to start?

    Thanks
     
  2. Lab Guy

    Lab Guy Well-Known Member

    How about setting a price that equates to one year's net income (gross income minus expenses) plus the depreciated value of all your equipment. Also add your accounts receivable (AR)to your price but value it less than 100% due to those patients that do not pay. You can also decide to keep your AR and bill it out yourself especially if you stay with the buyer for a three month transition time to introduce all the patients to him.

    Steven
     
  3. medisrch

    medisrch Active Member

    A starting point would be three times the annual profit.
     
  4. David Smith

    David Smith Well-Known Member

    Attached Files:

  5. Adapod

    Adapod Welcome New Poster

    Thanks guys appreciate your advice.

    Adam
     
  6. Ideology

    Ideology Active Member

    Putting a price on a business can be a little more complicated than simply filling in a form. There are accounting principles to guide you, and there are market and intangibles that also have an effect. Generally a person appraising a business should have a pretty good understanding of the industry and the specifics of the type of business they are appraising. As the form shows, you need to arrive at the adjusted profit for the practice, which can be an interesting process. Then the assets such as equipment, stock, work in progress etc all need to be taken into account. after that there are factors like visibility, parking, growth potential, branding, state of the patient records, local reputation, competitors and so on. All can influence the price. We might be taking details and being pedantic, but if you can get a few thousand pounds more its worth doing in my opinion. Recommend you get a person with experience in podiatry who can advise. There will be someone. See if the BCPA of someone like that can recommend a local advisor with the right knowledge. Please feel free to ask any questions if I can help.
    mark@ideologyconsulting.com.au
    Mark
     
  7. APodC

    APodC Active Member

    I agree Mark. Over the last fifteen years I've seen many practitioners greatly over or undervalue their business due to simple errors (failing to properly account for proprietors salary at a market rate, adding book assets to the market value etc). I'd suggest finding someone who can value the business using multiple check methods while remembering that any business is only worth what a willing purchaser is prepared to pay.
     
Loading...

Share This Page