A Common Question We Get: What’s the Value of My Practice?

Originally published on June 7, 2024

Wondering about the value of your medical practice? 🏥💰 It’s a common question! Whether you have a selling price in mind or need guidance, determining your practice’s worth involves multiple factors and approaches. In this video, we’ll break down the three primary methods to value your practice: Income, Asset, and Market approaches.

Key Points Covered:
*Income Approach: Evaluates the economic benefits someone could expect from owning your practice.
*Asset Approach: Focuses on the value of your assets, including medical equipment, office equipment, furniture, software, and real estate.
*Market Approach: Compares your practice to similar practices in your area that have recently sold or are currently for sale.

We’ll walk you through an example using the Asset approach, looking at everything from medical equipment to patient lists and intangible assets. Understand the full scope of what contributes to your practice’s value, including real estate, patient records, and the practice’s reputation.

Example Calculation:
$100,000 in assets
$750,000 in real estate
$300,000 in patient list and records, and other intangible assets
Total Estimated Value: $1.15 million

Important Tip: Don’t wait until business declines to consider selling. It’s harder to find a qualified buyer, and you might end up closing your practice with minimal returns. Stay proactive and informed about your practice’s value!

#MedicalPracticeValuation #MedicalPracticeWorth #SellYourPractice #PracticeValuation #MedicalAssets #HealthcareBusiness #PracticeManagement #MedicalEconomics #BusinessValuation #PracticeSellingTips

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