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Some practices are valued using a rule-of-thumb formula. This is unfortunate for both the buyer and the seller. Rule-of-thumb formulas do not specify the real value of your practice. They are misleading and assume all practices are the same. Values from these formulas are lacking in substance. A proper valuation will go beyond formulas and include a full financial analysis whenever possible.
We establish the fair market value of your practice. Fair Market Value is the price, in cash or equivalent, that a buyer could reasonably be expected to pay, and a seller could reasonable be expected to accept, if the property were exposed to the open market for a reasonable period of time, both the buyer and the seller having the pertinent facts and neither being under compulsion to act with the transaction being at arms-length.
- We consider the future outlook, present status and historic trends of each individual practice we value.
- We analyze the quantitative and qualitative factors of the practice.
- We use up to three different approaches to determine the Fair Market Value of the practice.
Asset –
Based Approach:
We determine the value of your practice piece by piece. We reveal the value of your practice's assets. These assets include both the value of your tangible and intangible assets.
Market Approach
We determine the value of your practice by comparing it with similar practices that have already been sold in the market.
Income
Approach
We determine the value of your practice by forecasting the normalized earnings of your practice and discounting those cash flows at a rates equal to the practice's level of investment risk.
Appraisal
Quality Tests
Learn if our value is accurate.
You can call us at 801-369-4444 or email us at info@professionalsalliance.com.
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