Valuation

Knowing the value of a dental practice is a vital part of owning and running one. Knowing when to and then actually obtaining dental practice valuations; however, can be complex and stressful. The experts at OMNI Dental Practice Group understand how confusing the process can be and work hard to ensure as stress free experience, regardless of the reason for looking into valuations.
Common Reasons for Dental Practice Valuations
There are several reasons doctors need to know the value of their dental practice. The most common reason is for dental practice transitions or sales. Valuations help to determine if the asking price is reasonable, to figure out a reasonable asking price to begin with, and to ensure the practice is profitable enough to invest in; this is also important to know when considering a merger. Doctors should also get their practice valuated within ten years of retirement and every two years after for estate planning purposes. Therefore, it is important to make sure the valuation is not a cookie cutter process.
Rule of Thumb Should Not Apply
No two dental practices are the same, so no two valuations should be the same. Often dental practice valuations are conducted using a rule of thumb method. The method does a major disservice to both the seller and the buyer, as it often does not highlight the practice’s uniqueness and how that influences the actual value of the practice in question. For a true valuation, many aspects of the practice must be taken into account and evaluated by experts with extensive formal training and resulting certifications, such as the experts at OMNI Dental Practice Group.
Experience Matters
When looking into dental practice valuations, it is important to make sure the professionals have extensive experience performing said valuations. The team at OMNI Dental Practice Group; for example, have helped hundreds of doctors buy and sell their practices using accurate valuations based on the practice itself and are considered dental industry experts in practice valuations.  As members of the Institute of Business Appraisers and the Practice Valuation Study Club, OMNI Dental Practice Group offers accurate and individualized valuations for dental practices in Washington, Oregon, and California.
To learn more about why and how dental practice valuations are conducted, or to request a free consultation in the Washington, Oregon, or California areas, please contact the expert staff at OMNI Dental Practice Group. OMNI’s team of experts are dedicated to ensuring each client’s success through transitions, valuations, consulting and other real estate services in the dental field.

Knowing the value of a Veterinary practice is a vital part of owning and running one. Knowing when to and then actually obtaining Veterinary practice valuations; however, can be complex and stressful. The experts at Omni Veterinary Practice Group understand how confusing the process can be and work hard to ensure as stress free experience, regardless of the reason for looking into valuations.
Common Reasons for Veterinary Practice Valuations
There are several reasons doctors need to know the value of their Veterinary practice. The most common reason is for Veterinary practice transitions or sales. Valuations help to determine if the asking price is reasonable, to figure out a reasonable asking price to begin with, and to ensure the practice is profitable enough to invest in; this is also important to know when considering a merger. Doctors should also get their practice valuated within ten years of retirement and every two years after for estate planning purposes. Therefore, it is important to make sure the valuation is not a cookie cutter process.
Rule of Thumb Should Not Apply
No two Veterinary practices are the same, so no two valuations should be the same. Often veterinary practice valuation are conducted using a rule of thumb method. The method does a major disservice to both the seller and the buyer, as it often does not highlight the practice’s uniqueness and how that influences the actual value of the practice in question. For a true valuation, many aspects of the practice must be taken into account and evaluated by experts with extensive formal training and resulting certifications, such as the experts at OMNI Veterinary Practice Group.
Experience Matters
When looking into Veterinary practice valuations, it is important to make sure the professionals have extensive experience performing said valuations. The team at Omni Veterinary Practice Group; example, have helped hundreds of doctors buy and sell their practices using accurate valuations based on the practice itself and are considered Veterinary industry experts in practice valuations.  As members of the Institute of Business Appraisers and the Practice Valuation Study Club, OMNI Veterinary Practice Group offers accurate and individualized valuations for Veterinary practices in Washington, Oregon, and California.
To learn more about why and how Veterinary practice valuations are conducted, or to request a free consultation in the Washington, Oregon, or California areas, please contact the expert staff at OMNI Veterinary Practice Group. OMNI’s team of experts are dedicated to ensuring each client’s success through transitions, valuations, consulting and other real estate services in the Veterinary field.

So, you found a practice you like and it has a price tag of $500,000. How do you know the dental practice is valued correctly? A short answer is that the price, or value, is what a willing, knowledgeable and unpressured buyer along with a willing, knowledgeable and unpressured seller would be willing to exchange for a property or asset.

I can probably write a short, very boring book, on valuing a dental practice. But, no one would buy it and no one would read it. So, I’ll keep this short and if you want more information, you can call or e-mail me.

A rule of thumb:  value that is often quoted for the northwest is between 65% and 75% of the last 12 months collected production. If you’re in a metropolitan area like downtown Seattle, Bellevue, Redmond, etc., it will be on the high end, possibly more. If you’re in a rural area, you’ll be on the low end and possibly less.

When I do a formal appraisal on a practice, I use standards approved by the Institute of Business Appraisers, of which, I am a member. These methods take into account not just the collections of the practice, but more importantly, the income of the practice. Why is this? Well, would you buy a $1 million practice with a net income of $100,000, or a $500,000 practice with a net income of $200,000? Don’t answer out loud unless you’re certain of the answer.

We, at Omni, use three methods – capitalization of earnings, asset value, and production acquisition that blend three areas of the practice – earnings, assets and production, to get a true value of the practice. In summary, when you look at the price of a practice, you can start with a rule of thumb to get an idea of whether the practice is priced right. But, in the end, a full valuation is needed to determine the true value.

-Rod Johnston, MBA. CMA