Appraisal Quality Tests:
Would you purchase a dental practice with a monthly loan payment more than the amount of cash it generates each month? Neither would we. One of the tests we use to verify our values are economically sound is the Justification of Purchase Test.

To ensure an accurate value, we see if the income produced is enough to allow the practice to pay for itself over a reasonable period of time and if the buyer's rate of return is comparable with rates available on equally desirable investment substitutes.