Valuing a dental practice – crucial for buying, selling and for your business strategy
Valuations when buying
It’s obvious why valuations are so important when buying a dental practice, as this will likely be the biggest financial commitment you make during your career.
You need to know that what you’re buying is at fair market value. This isn’t just about trying to bring the price down, though, it’s about potential value.
How could this practice fit in with your future plans – what, if any, are the “threats” to a business that looks to be, on paper at least, an absolute steal? Or, is there investment planned in the area, which means paying that bit more to secure the deal is a sensible, pragmatic business decision? The potential value must be factored into your negotiations and any offer you make.
Valuations when selling
When you’re getting ready to sell, or even just considering it, a valuation will help you identify any changes you need to make to command a higher price.
There will always be simple things you can do to maximise your value and show interested buyers what a great asset your practice is. Not just repairs or cosmetic improvements either, but changes to your tax efficiency – that’s when you’ll need a specialist dental accountant.
Having your own valuation will also give you something to work with, should your buyer’s value differ and come in below your expectations.
Valuations when raising finance
There are lots of situations when you’ll need to raise finance – if you’re expanding your premises or even buying another one. Banks and other lenders will request a valuation of the practice to understand your financial position.
In fact, valuing your practice serves several different purposes – it can be used as a “health check”, to see if your business plan is on track and if there are issues that need addressing, or if you’re thinking ahead to retirement. A valuation is a powerful tool for future planning.
Why choose Figurit to help boost your valuation? As specialist dental accountants we will look at every aspect of how a dental practice runs as a business, whether you’re buying, selling or need to raise finance. We have a long history of working with clients, to ensure that valuations are fair and we also advise on how they can be maximised.
We don’t just keep your books in good order, we can unlock potential too! Contact us today to discuss how we can help.
Call Figurit on 020 7376 9333 or complete the form below.