Dental Practice Valuation

DENTAL PRACTICE VALUATION

Dental Practice Valuation follows the same principles as the valuation of other businesses. Many concerns are the same, such as the practice being dependent on a single individual, and how many referrals are obtained because of the individual. There are generally three methods of valuation for businesses. Dental practice valuation sometimes utilise a fourth method, a rule of thumb. In a professional practice, the value of the intangibles is more likely to constitute most of the overall value than in the case of other businesses and goodwill is more likely to be personal (professional) than in other businesses.

“Professional” goodwill derives from the individual practitioner’s  reputation and personal success in the profession, and the trust and respect that the individual practitioner has engendered in his or her clients.

“Practice” goodwill relates to the firm’s ability to continue to generate earnings without the presence of any particular professional. Location, computer systems, staff, operating procedures, and a recurring client base are all elements of practice goodwill.

What is most appropriately used now in a Dental Practice Valuation is usually the Income Approach, which generally doesn’t distinguish between goodwill value and asset value. It only cares about the return available, particularly in excess of what the fair market compensation is for that practice. One thing is paramount in a Dental Practice Valuation, and that is that the valuer has the experience and qualifications to provide a valuation that is accepted for both merger and acquisition or litigation purposes.

The principle of Business Reports and Values, Lee Goldstein, has been involved in Business Valuations since 1985. He holds the following qualifications:

Double Major Degree in Accounting and Finance
Diploma in Forensic Accounting
Graduate Diploma in Valuation
Advanced Certificate of Business
Advanced International Certificate in Intellectual Property.

Lee has conducted numerous intellectual property valuations covering a diverse range of industries, and is often called upon to provide expert testimony in judicial matters. Lee has valued businesses and intellectual property worth over $3.2 billion.
Lee Goldstein has been the Triennial Certificate holder and Licensee of a Business Broking Company since 1992.

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