New year, new start
TOP 10 REASONS WHY - Every practice owner should have an up-to-date annual practice valuation
Most practice owners tend to value their practice only when they are ready to make a change, which could be selling or refinancing the business, buying another practice of similar. Really savvy business owners value their practice(s) regularly, as this allows them to make more informed decisions about their (usually) most valuable asset and take action to improve its value.
- INCREASE PRACTICE VALUE – Measure your performance against other similar dental practice and identify opportunities to increase profitability and value of your dental practice.
- EMERGENCY EXIT STRATEGY – Protect the equity in your practice for your family, should the unexpected happen. It can make the difference between selling your practice and having it become unsaleable.
- FUTURE PLANNING – Develop a plan of action 5 to 10 years before you plan to retire or sell.
- ADDITIONAL PRACTICE ACQUISITION FINANCING – Many lenders require this to support a purchaser’s loan request and enable your ability to expand your ownership portfolio.
- ASSOCIATE/PARTNER ADDITION – To attract the best candidates who have a vested interest in eventual ownership. Need to determine the buy-in price and proof that the buy-in price is realistic for candidates.
- TAX PLANNING – Allows you to make the right choices for your business based on the budget driven changes and HMRC policy adjustments used to determine tax allocations.
- INSURANCE FUNDING – To ensure adequate insurance coverage.
- ESTATE AND FINANCIAL PLANNING – A critical part of wealth planning as well as thinking about funding your retirement.
- PRACTICE SALE/SET ASKING PRICE – An assessment of what your practice is worth in the current market will help you set a realistic asking price.
- PRACTICE MERGER VALUE – Be ready to decide or instigate a merger, so you are ahead of the game.
If the above resonates with you, MediEstates have been valuing practices for over a decade and the information from each transaction is part of the data used to value future transactions. As the largest dental practice broker in the UK market, we have our finger on the pulse to ensure you benefit from this experience.