Professional Practice Valuations
Professional practices may need to be valuated for a number of reasons including but not limited to; a potential sale of a professional practice, bringing in an associate or partner, obtaining financing for an expansion or modernization of their practice, creating a personal financial statement, estate planning or personal reasons such as planning for retirement or even for a divorce.
Valuations that define as accurately as possible the true value of a professional practice as an on going concern among practice brokers throughout the country. Both Brian and Sean Hudson are active members of the Practice Valuation Study Group, the leading professional organization that meets regularly to examine, define, and refine appraisal procedures, which are then used by practice brokers throughout the United States. Sean Hudson is also an active member of the National Association of Certified Valuation Analysts.
At Hudson Transition Partners we considers many factors beyond a practice’s reported gross and net income. We also look at the quality of the patient base, competitiveness of the practice’s fee schedule, any and all personal benefits which the practice provides to the dentist, market data collected in the area that the practice is listed as well as many other aspects which are to involved to list here. We offer a fair and accurate value of your practice to be used for any of the reasons mentioned above.
We assist professionals in the sale of their practices by working closely with the seller to evaluate their practice and arrive a fair market value. We then seek out qualified buyers by searching our own database of interested parties, our referral network, and also by advertising in professional journals, newsletters, bulletins, dental industry websites, and on our website.
After we have identified qualified buyers for the practice, we require them to sign a confidentiality agreement, which we keep on file in our office, no buyer receives any information about the practice or visits any of our clients’ offices unless this agreement has been signed and our team has interviewed the buyer. We work around the sellers schedule to show practices to qualified buyers as to not interrupt his or her business and to make certain the sale is held in the strictest confidence.
Once we have a signed purchase offer from a qualified buyer which has been accepted by the seller we then work closely with both the seller’s and buyer’s attorneys, accountants and financing sources to provide a smooth transition of the professional practice which benefits all parties involved.
Unfortunately many times we are asked to sell practices due to illness, disability and/or untimely deaths. This can be an extremely emotional and difficult time for not only the doctor’s family but also his or her staff. We pride ourselves in providing the absolute best service during these times. With our network of clients we are able to place an associate dentist with no interest in acquiring patients in the office to stabilize the revenue and maintain value. While in these circumstances we do “drop everything” and focus on valuing the practice and getting it sold, it is very important that doctors consider having a practice valuation done prior to any unfortunate events. Having a practice valuation completed speeds the process by weeks and in these situations time is precious.
In addition to representing the seller of a professional practice we also offer buyer representation. We do not however, represent both parties! While legal, we feel that dual representation is unethical. We offer practice valuations, handle all negotiations as well as pre and post-sale consulting services to new buyers by working with the doctor for a period of time before and after closing to insure a successful practice transition. Whether it be for a practice purchase or start-up we work with buyers and help them obtain a financing package that suits their personal needs. We can also provide a detailed demographic analysis for the area a doctor wishes to purchase or start-up. These services are always fee for service as we no not think it is right to charge a commission where buyers would pay us more if they pay more for a practice, does that make sense to you?
Often times a doctor is not ready to retire right away but would like to have a plan in place. We will work with you to find the right person to take over your practice and structure a transition to work with your time frame and exit strategy. Please note however that we are not a head hunter for associate jobs. We provide this service only for doctors that wish to structure a buy-in/buy-out of their practice not doctors simply looking for employees.
In addition to professional practice valuations and brokerage, Hudson Transition Partners also offers consulting services. We have a large network of professional resources on hand to give you all of the information you need to run a successful professional practice. We offer assistance in partnership structuring, associate placement, practice mergers and implementing improvements that will add to the value of your professional practice. In addition to these services we also offer dental demographic reports which are very helpful in your decision to purchase or start-up a practice. Through information provided by our clients as well as dental CPA’s throughout the Northeast we can provide a comprehensive overhead analysis for you as well as assist in setting a proper fee schedule for your practice. We are happy to share this expertise with the doctor who wishes to improve his or her practice.