Dental Practice Sale | Assessment
Thinking about assessing the value of your office for a dental practice sale? Whether you’re planning to sell your practice right away or pondering the possibility down the road, an appraisal is a good way to explore your options. A quality appraisal, however, requires considerable time and resources, so it’s important to be sure that it’s done right the first time! To get the full potential of your investment in a dental practice sale appraisal, these three tips below are good measures to follow:
1. Recognize opportune times for an assessment.
Do you work in a group or with fellow associates at your practice? Do you know what will happen to your practice if tragedy strikes? Getting an appraisal done can help you be prepared. Establishing a price for it helps you and your partners understand its value, and your associates can buy the practice to keep it going if you pass away or become disabled.
It’s also important to mention that an assessment is recommended before placing your practice on the market, rather than placing it first and then offering an asking price. That way, a realistic value is established from the start – not too low, and not too high.
2. Understand key appraisal terms.
Understanding the key terms in dental practice sale valuation can simplify the complexity of the process. Fair market value, investment value, fair value, and intrinsic value are each different ways for value to be estimated for a dental practice sale. If you take the time to learn them from the get-go, it will be much easier in the long run.
3. Have the right information ready.
When the time comes for your practice appraisal, will you be ready? Documents that reflect your lease, insurance, taxes, income, practice expenses, number of patients, and relevant contracts should be kept on hand to review during the valuation. Knowing the physical assets of any buildings and equipment in your practice is helpful, too.
To find out more about appraisals and how they work, contact us at Menlo Dental Transitions. Our team of dedicated professionals can guide you through the complexities of a dental practice sale and help you plan ahead for the future.