If you have ever purchased a used car, I am sure you have visited the website or heard of CARFAX. As the most trusted provider of vehicle history information, CARFAX is used by millions of consumers each year. When considering purchasing an existing dental practice, shouldn’t you expect the same level of translucency in the information?
CARFAX Vehicle History Reports are available on all used cars and light trucks. Every CARFAX Report contains information that can impact a consumer’s decision about a used vehicle. Some types of information that a CARFAX Report may include are:
- Title information, including salvaged or junked titles
- Flood damage history
- Total loss accident history
- Odometer readings
- Lemon history
- Number of owners
- Accident indicators, such as airbag deployments
- State emissions inspection results
- Service records
- Vehicle use (taxi, rental, lease, etc.)
When buying a practice you need a professional and trusted report on the value of the dental practice done by a third-party. This report on value provides an honest look into the practice, it can function as a business plan for the future and it helps buyers get the financing needed to purchase the practice.
Most dental brokers do their own appraisals, and some represent both sides of the deal. How is this a fair assessment of what you are considering purchasing? Ultimately, the broker is paid on a percentage of the sale price…so its in his best interest to have it be high…right? Also, note that all dental practices are unique. It is easy for a realtor to value one home based on the house next door in a track neighborhood…but dental practices are different. They are a working, living and income producing machine that has more to it than just the walls and
Here are some things to look for when getting a valuation:
• Fair market practice value based on factual information provided paired with economic conditions and their relevance to the practice and the industry as a whole
• Certified Valuation Analysts by Blue & Company to provide the most comprehensive appraisal of your practice. These analysts are highly-trained Certified Public Accountants who specialize in evaluating businesses, further concentrating on medical and dental practices.
Blue & Co. has provided valuation services since the late 1970s. Their professional staff are known experts in the field, support attorneys in all areas of litigation and hold key certifications including Certified Valuation Analyst (CVA), Accredited Senior Appraiser (ASA)- Business Valuation member of the American Society of Appraisers and the AICPA’s specialty designation for business valuators (ABV).
Following these steps will result in a fair, factual and detailed report, with information:
• Scope of of work performed
• How the calculations were completed
• Calculated value.
So, when considering purchasing a practice…ask for the CARFAX… For more information on getting a Fair Market Evaluation or to discuss a Fair Market Evaluation for your practice, contact Thad Miller.
Also, look for more information coming soon on the incorporation of another valuable addition to the The Trusted Transition Process. DDSmatch will be conducting third party “Clinical Appraisals” on practices as part of the appraisal process. This addition will make the DDSmatch process the most comprehensive in the industry and give buyers and sellers more of what they demand!