Lendle

This resource provides a balanced approach to practice valuation for both buyers and sellers. Refuting many common myths of valuation, Valuing a Practice raises awareness of possible legal and tax issues that may arise during this critical process. Also provides guidance on selling or buying an entire practice, a portion of a practice, and planning a future buy-in or buy-out. Other features include:•Definitions of key terms•How to select a person to perform the valuation•How to choose the valuation method that is right for you•Examples of sales documents and contract provisions •Detailed explanations of various valuation concepts, such as the capitalized earnings, discounted cash flow and net asset methods•Case studies•Sample sales agreementUnderstanding the intricacies of valuation is crucial to the success of your transaction. Be informed and knowledgeable with help from the ADA. Table of ContentsChapter 1: Practice Value; Concepts of Value; When Should a Practice Be Valued?; Fair Market Value, Price and TermsChapter 2: Critical Valuation Issues; Valuation Assumptions and Limiting Conditions; Information Required to Perform a ValuationChapter 3: Valuation Methods; Which Valuation Method is Right for You?; False Assumptions Concerning Practice Valuation; Valuation Concepts and Earnings Methods; Capitalized Earnings Methods; Discounted Cash Flow Method; Asset Approach: Net Asset Method; Market-based Approach; Guideline Company Method; Transactions MethodChapter 4: Factors Complicating the Valuation Process; Associate Buy-outs and Buy-ins; Valuing a Portion of a Practice; Inadequate Financial and Clinical Records; Valuing Specialty Practices; Participation in Managed Care Programs; Employment of Family Members; Dentist-owned Real Estate; Practices with Multiple Office Locations; Chapter 5: Buying a Practice versus Starting a Practice; Advantages and Disadvantages of Buying a Practice; What a Seller Should Know; What a Buyer Should Know; Case Studies: Starting versus Buying; Case Study I: Starting a Practice; Case Study II: Buying an Existing Practice; Associate to OwnerChapter 6: Preparing for the Sale and Using Advisors; Marketing the Practice; Finding a Buyer; Showing the Practice; HIPAA Implications; Buyer Qualifications; Negotiations; Advisors; Selling All versus Part of a Practice; Chapter 7: Legal and Tax Issues; Legal Documents; Tax Implications; Sales Contract Provisions; Installment Sales; Other Sales Documents; Other ProvisionsConclusionAppendicesAppendix A: Sample LettersAppendix B: Sample Sales AgreementAdditional Resources