If you’re a doctor, you’re sure to love the satisfaction of helping others each day and the challenging, varied career it provides. But one thing you may not love about the job is running your medical practice.
Administration is usually not a favorite word of doctors, but you need to look after your clinic to keep it running well. One thing many doctors think about is whether or not they need a formal valuation.
The answer is yes! A formal valuation is the only way to find out exactly how much your practice is actually worth.
Keep reading to find out some of the key times when you’ll need to have a valuation done for your practice.
You’ll Need a Valuation for Selling Your Medical Practice
One of the main reasons to have a formal valuation done is for selling your practice. There are many reasons why you may want to sell, such as retirement or change in lifestyle.
However, no matter the reason, you want to sell your practice for a fair market price. The valuation will help you learn exactly how much your practice is worth, letting your price accordingly.
Whether or not you’ll get as much as you want for it depends on the nature of the market, but at least you’ll know with certainty how much it’s worth.
Buying a Practice
Are you thinking of buying a medical or dental practice? This is a very exciting time, but you don’t want to overpay.
Instead, get a practice valuation of the clinic you’re thinking of buying. This way, you can know you’re paying a reasonable price and not being unfairly ripped off.
Unfortunately, dishonesty can happen in any field, including health, so the small price of the valuation is worth it for the peace of mind it provides.
Applying for a Loan
Are you thinking of applying for a loan for your business? You may require a professional loan to open a new clinic, expand your current one, or buy a pre-existing practice.
No bank will provide a loan to you until they know it’s a safe investment. This means they’ll want to know how much the business is worth so that they’re sure they’re loaning you the correct amount of money.
When you’re applying for a loan, ask them what they require in terms of valuations.
Mergers or Acquisitions
Another time when a formal valuation might be needed is in the case of mergers or acquisitions. It’s not uncommon for medical practices to get bought up by larger corporations, but before this happens, you’ll need to know the value to ensure you’re getting a decent price.
Start the Valuation Process Today
So, how much is your practice worth? If you’re not sure, then it’s time for a valuation. Even if you’re not planning to buy or sell anytime soon, a valuation is still important for insurance and financial purposes, so it’s worth getting one done on a regular basis.
Knowing the value of your business is an essential part of owning a medical practice, so get started today.
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