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PRACTICE VALUATION SERVICES
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Do you know what your practice is worth?
Probably not, because practice valuations can be
both time consuming and costly. Even so, there are many
instances when it’s important to determine the value of your
practice:
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If you are preparing to sell your practice, you need to know
where to set your expectations.
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If you plan to bring new partners into your
practice, you need a third party valuation to set a fair buy-in
price.
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If you already have partners, you should have a
"buy-sell" agreement in place specifying how and when your
practice needs to be valued in case one partner wants or needs
to sell -
If you want to ensure that your estate planning
properly takes into account the amount of estate taxes expected
to be paid upon transition of your practice to your successors
What is the best way to value your practice? Unlike a home, which you can value based
on what your neighbors' homes are selling for, determining what your
practice is worth isn't quite so easy.
Often you need the help of a professional trained in business valuation to analyze
the various methods of valuation that would be most appropriate for your type of
business. The most common methods of business valuations are:
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The Capitalization of Earnings Method - The valuer considers historical earnings of a company to be indicative of future earnings and then divides the earnings by a capitalization rate to arrive at an estimate of value.
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The Net Asset Method - The valuer separately identifies and values each individual tangible and intangible asset of the company and then deducts the fair market value of all liabilities to arrive at an estimate of value.
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The Completed Transaction Method - The valuer analyzes sales transactions of comparable businesses to arrive at an estimate of value.
The trick is to decide which method or combination of methods best represents what your
practice is worth. To find out more about valuing your practice, please complete the form below
and one of our RepTaxes.com-affiliated business valuation specialists will be happy to help you.
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PLEASE COMPLETE THE FOLLOWING FORM TO CONTACT A REPTAXES.COM BUSINESS VALUATION SPECIALIST
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