Don’t be left in the dark

Have you ever wondered what your practice is really worth?  Or why practices often sell for way more than their appraised value?  Do you know what your practice could be worth if it was operating at its peak efficiency?  These are all great questions and if you knew the answers you would definitely be able to sell your practice for every penny of its greatest value.

Your practice has three possible values that you need be aware of unless you are prepared to leave a good chunk of change on the table:

Notional Value:  The value based on generally accepted investment returns with no special interest buyers and where the buyer would have excess cash flow left over after taxes & debt service.

Hypothetical Market Value:  The value based on what a buyer could spend based on the net cashflow of the practice if they used all the available cash flow to cover taxes & debt service.

Current Practice Potential:  The value based on the practice operating at its peak performance level and efficiencies where that performance level and efficiency is reasonably attainable.

Unless a buyer is aware of all three “values” it is likely they will gravitate to the Notional Value which is also likely to be the lowest value.

Where appropriate your Hill Kindy appraisal will contain all three values including an explanation of how they were determined and will discuss with you how we would use them in our selling process to maximize your return.  This is a very useful tool when multiple offers are a possibility as it allows buyers to better gauge the outcome they can expect and provides a sensible framework for determining competitive offers with confidence.

Don’t end up wondering if you sold your practice for what it was really worth; make sure you sell it for every penny that it is worth.  You are only going to sell your practice once – make it count.  For more information or to discuss your options on a confidential basis, please reach out to dhill@hillkindy.com or call 866-853-5344.

PS:  Take advantage of our Fall Special and receive $1,000 off the cost of your full appraisal.  Valid to December 31, 2021.