06/05/2024    Jack Ressler, DPM

Resource for Practice Appraisal

Why pay someone thousands of dollars to evaluate
your own practice when all they are going to do is
look over your numbers without even making an in
person evaluation of your office. They will offer
to come out and evaluate your practice but at an
even higher price. You can save money up front and
sign a contract with other companies that will
charge you a percentage of your sale price but you
are at their mercy and cannot control the extent at
which they advertise your practice. Signing with
one of these companies gives them complete control
of the sale of your practice even if you find your
own buyer. I doubt they will give you exclusions.

Who better to value your practice than yourself? It
is you that know your patients, staff, physical
office set-up, demographics, and numbers better
than anyone. The valuation of your practice comes
down to one simple thing and that is the number a
potential buyer is willing to pay. When I sold my
main practice in 2016, I advertised it in the
classified section of this forum. I did all of the
work myself ad paid a very reasonable amount for
advertising and lawyer’s fees.

I put my valuation at 100% of my average gross over
the last three years of practice. I ended up
getting 70% of that number. You will soon discover
after you start to advertise your practice, its
approximate value by the amount of response you
get. Let the potential buyer valuate your practice.
That is when negotiations are of utmost importance.
Don't let a buyer get away over a few dollars, but
on the other hand, don't give your practice away.
The sale of a practice can be nerve racking but
stay the course and look forward to that light at
the end of the tunnel. Retirement!

Jack Ressler, DPM, Boca Raton, FL

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