Help with Practice worth!

[quad32]

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hey guys,
my granddad passed away a couple weeks ago and he was still in practice. now we are in the process of selling his practice, which is in OKlahoma City in a Building in a medical type hospital and was wondering its worth?!? Any help would be greatly appreciated. the business did $150k worth of business last year if that helps, thank you SO much!

 

[SuperC]

There are companies that can provide you with an appraisal for a fee. Do a search for medical/dental practice appraisal services in your area and go from there.
-C

 

[quad32]

do you know where the best place to find one is? and is there any estimate at all you could give me or is it too difficult to tell? thanks!

 

[SuperC]

do you know where the best place to find one is? and is there any estimate at all you could give me or is it too difficult to tell? thanks!

If I were you I would go to dental town and ask the guys over there. Most if not all are practicing dentists and would know a lot more about this than most of us. I am sure that there will be people in your area that can give you more specific advice.

www.dentaltown.com

 

[12YearOldKid]

You should really find a practice broker to help you with this. A typical ballpark figure for a dental office is 60% of the last year's gross production. This varies somewhat with the age of equipment, amount of insurance the practice accepts, changing demographics of the area, etc....

Once the owner dies, a dental practice loses value very quickly. Within a few months it is basically just worth the value of the used equipment. I know it is hard to think about right now because you are mourning your grandfather but your family needs to act quickly on this. Type in dental practice sales in google and you will find many practice brokers ready to help you.

 

[capisce?]

A typical ballpark figure for a dental office is 60% of the last year's gross production.

Production must be looked at over at least a 3 year span. Owners will pump production if they know they are selling and inflate the value.

 

[12YearOldKid]

Production must be looked at over at least a 3 year span. Owners will pump production if they know they are selling and inflate the value.

Definitely true, but I didn't want to overly complicate this for him. He just wanted a ballpark estimate.

 

[DrJeff]

I hate to be the one with the bad news, especially considering the passing of your grandfather already, but most practices where the owner passes away while still in practice, where there isn't already a buyer lined up will see a plummeting value in the practice appraisal price, since very, very quickly that patient base will start to seeking care elsewhere. Very often, a significant portion of a practices appraised value is not from the physical features(equipment, etc) but from the patient base.

 

[quad32]

thank you guys for the help.
i believe the practice went for about 1/3 of last years revenue, maybe a little lower. it was a problem with the patients leaving after he passed away, but decreased the value. thanks again!

 

[jimbomcbean]

Best wishes.