Medical Practice Valuation – Know Your Practice’s Worth

We offer specialised medical practice valuations for our clients. These can be for a range of purposes. Our medical practice valuations are fit for purpose and the specifics and scope for which they are required. They are significantly more in depth and vary greatly from generic appraisals.

Reasons for Seeking Medical Practice Valuations

• ATO Compliance
• Family Law Court proceedings
• Partnership disputes or dissolution
• Buy In / Buy Out between partners
• Mergers and Acquisitions
• Stamp Duty purposes
• Assisting in litigation
• Insurance settlements
• Estate planning or succession planning
• Purchasing a healthcare practice

The list of reasons for healthcare practice valuations is extensive and we tailor our reports to the specific purpose you require.

Registered & Expert Practice Valuers

As Registered Valuers (RBV) we undertake medical practice valuations in accordance with the International Valuations Standards Council (IVSC). The IVSC is a leading global standard setter for business valuations.

We follow a rigorous process guided by the IVSC framework, and backed with market evidence.  Our reports are benchmarked against historical sales of similar businesses to provide robust and defendable reports.

The Purpose & Scope

The first step in the process is to determine the purpose of the valuation and discuss the scope which will then determine the length and type of report that is required. After which we can quote a fee for completion of the report to the level of detail that is required.

During our initial phase we will call for documents such as:

Financial Statements & Balance Sheets

These need to be audited financial statements from your accountant as submitted to the tax office. Management financial reports generated from software such as Xero or MYOB or spreadsheets are not fit for purpose for health practice valuations. We will assess profit and loss, conduct normalisations of accounts and assess the balance sheet and depreciation schedule of assets.

Tangible Assets

An assessment of your tangible assets in their current and used state.

Size and Scale of Practice

This allows us to determine risk and dependence on key individuals as well as staffing size and full time equivalent headcount of clinical billers.

Geographic Location and Patient Demographics

We will assess where you are situated and whether the business is accessible and prominent with strong branding. Also, city or regional considerations play a factor in healthcare practice valuations.

Accreditation or Registrations

We will seek information on whether your practice meets any industry standard or benchmarks or holds any recognised level of accreditation or specific registrations.

Lease and Tenancy Agreements

Our enquiries will extend to an evaluation of your lease. Its timeframe, any specific conditions such as demolition clauses or extendable options that could affect it as a going concern and influence the healthcare practice valuations process.

Income Stream

As medical business valuers we will assess the practice income, gross billings, any government incentives or subtenancy payment arrangements. This assessment will also involve analysing the clinical billings of specific key individuals and those associated risks.

IT and Processes

Is your practice using the latest in IT, database and record keeping technology?

Loans and Leases

If plant and equipment is under lease or loan we will assess those contracts as healthcare valuers as part of the calculation process.

Do Your Require a Valuation or an Appraisal?

What is a Medical Practice Appraisal?

An appraisal is an “estimate” of market value for your practice. Appraisals are essentially “back of the envelope” calculations. Appraisals are not conducted against any independent framework. To produce an appraisal, a broker or agent does not need to have any qualifications or specific education. Practice appraisals, cannot be used for legal purposes and are non defendable documents. They cannot be used for such instances as family law court, partnership disputes, tax office requirements, partnership buy in / by outs etc. In such situations, they are rendered useless. This is why most appraisals for business and property are conducted for free.

What Is The Difference With a Valuation?

Practice valuations and other business valuations, can only be performed by qualified and registered valuers with qualifications and experience. As registered valuers, we meet that standard. Our valuations are rigorous legal defendable documents of considerable length. They are written against a specific independent standard, in our case the IVSC. They are of deep scope, and meet the requirements of courts and other institutions for which they are fit for purpose. They are the gold standard for which to base negotiations or disputes.

Please contact us should you require any information of medical practice valuations.

For further information, please complete the form below and will be in touch to discuss your requirements.