Valuing a dental practice requires the gathering of information, the ability to analyse this information and access to comparable data to benchmark the figures to arrive at a goodwill value.
In this short webinar, Andy Acton from Frank Taylor & Associates, the UK’s leading dental sales agent, explains more about the 9 steps involved in valuing a dental practice.
A summary of the 9 steps are as follows:
Step 1: Make sure you own the information that is going to be used to value the dental practice or have the permission of the owner to use it.
Step 2: Set time aside to prepare the necessary information which you will most likely want to do privately.
Step 3: Financial data collection – this is will include your financial accounts for the past three years, fee income for the most recent 12 months, details of your income types whether NHS, private fee per item or plan based income.
Step 4: Property data collection – this will either be the current lease terms and or the freehold value.
Step 5: Team data collection – the hours each person works, their role, how long they have worked at the practice and for and how much they are paid. The same is required for the self-employed clinicians.
Step 6: Practice data collection – the services offered, opening hours, marketing techniques used and compliance certificates.
Step 7: Competitor analysis – review the local area, the distance captured will vary depending on your specific location.
Step 8: Use current comparable data to assess your own practice against others of a similar type to establish the true value. You may need to engage a specialist valuer to assist here as comparable data is critical to establishing an accurate value.
Step 9: Decide your next steps now you know the value of your practice.
If you follow these nine steps you can be confident you will have an accurate and up to date valuation of your dental practice.
Please call us on 0330 088 1156 for any further help and advice.