There are many reasons for transition in a medical practice: retirement, relocation, disability, physician “buy-ins,” expansions, and more. Determining the value of the practice is imperative for a proper practice transition.
Many buyers and sellers lose sight of the facts that
- What a practice is worth is a function of negotiating (a first offer from an interested buyer based on a valuation report is nothing more than a first offer).
- A valuation does not determine the market price of a practice: the market determines the value.
Valuation of a medical practice represents the valuation consultant’s opinion of the worth of the practice at a given point in time. Opinions can—and will—vary considerably.
Leon B. Harrison, CLU, President of Colorado Physicians Consulting Co. has been an independent contractor with COPIC Financial Service Group since 1991. Leon consults with physicians and medical groups throughout Colorado.
Leon understands why a professional practice is different. He understands it involves expertise of the professionals, income that is earned, and that reputation and recommendations are the life-blood of the practice.
Questions about valuing your practice? Click here for more information. Contact Leon at (720) 858-6288 or e-mail him at lharrison@copic.com.