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Hi All,

I have been trying to find a "magic formula" to give me a rough estimate of how much I can expect to sell my podiatry practice for. Obviously I can ask my accountant to do this for me, but realistically I'm not looking to sell until the end of this year.

I started my practice straight from university and I have built it up over the last eight months, in which time I realised this isn't the right career for me and is too much of a tie at this stage in my life.

I have built up about 350 clients in the last 8 months and this is expanding daily - this should be an excellent business for someone who is passionate about podiatry, in one of the most beautiful areas of New Zealand.

I am based mostly in a clinic which I have set up from a residential site, and I go to 2 retirement homes 30min - 1 hour away once a month. I also do home visits once a week, 90% Gerontology/general foot and nail maintenance; 10% BMX, I see about 25-30 people per week at the moment.

Does anyone have any ideas or experience in this area - I'm having trouble finding podiatry specific information based on NZ practices.

Thanks for your time

 

When you find the magic formula have a look to see if there's a crystal ball nearby as well, i'm after one.

Seriously though your practice is worth what you are prepared to sell it for and what someone is prepared to pay for it.

Any purchaser will want to see your accounts and this will give some indication of the income stream they are looking at purchasing.

Accountants have a number of ways of evaluating what a practice is worth and in my experience come up with numbers that vary widley. So I still think it really comes down to what your prepared to sell for and what someone is prepared to pay.

Wishing you well

Greg

 

I agree with Greg Fyfe.

One year's gross fees would be a simple (optimistic) magic formula.
One year's net profit would be a simple (more realistic) magic formula.