In this podcast, Nathan Hayes, IDOC’s Director of Financial Services,
highlights the essential factors involved in determining the value of a practice, including revenue, profitability, market conditions, and competition. The role of financial statements and historical performance metrics, such as EBITDA, is emphasized as critical tools in the valuation process.
The conversation also explores the challenge of quantifying intangible assets like goodwill, reputation, and relationships, shedding light on their impact on a practice's overall value. The interview addresses whether formal valuations are necessary for all practices and how the presence of private equity has transformed the landscape of healthcare practice valuation and acquisition.
Our discussion uncovers common mistakes and misconceptions held by practice owners about business valuation, helping them navigate the process more effectively. For potential sellers with exit plans, valuable insights are shared regarding benchmarks and strategies to boost their practice's value. Likewise, potential buyers receive guidance on avoiding overpayment, ensuring informed decisions when considering acquisitions.
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0:00 - Intro
2:44 - Key factors in determining the value of a practice
5:40 - Discussion of appraisals
8:40 - How accurate are appraisals?
12:15 - How has private equity changed the landscape?
17:25 - What ODs can do to increase value
21:00- What metrics should owners be paying attention to?
25:20 - When is it better to open cold vs. buy?
35:03 - How does goodwill factor in?
Practice metrics
Books and Benchmarks
Bookkeeping
Benchmarking
Негізгі бет Eye Own a Business Episode 37: What's My Practice Worth?
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