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Medical Practice Sales, Appraisal and Financing

Medical Practice Sales, Appraisal and Financing

An article regarding the use of benchmarks in ophthalmology practices appeared in the April issue of Ophthalmology Times. The author makes a good point regarding the use of a single benchmark versus a collection of benchmarks. The use of a combination of relevant and effective benchmarks can be a more reliable way to gauge the ongoing health of an ophthalmology practice rather than the use of a single "favorite" standard.

For the purpose of practice sales and transition planning, different benchmarks are more useful than others. In ophthalmology practice valuation and appraisal we primarily look at overhead and underlying profit. When arranging an exit strategy and transition plan it is important to review these numbers in light of other factors such as patient statistics. An incoming buyer may be better served by retaining the outgoing seller for a longer period post-closing, if the transition would be more effective in this manner. Conducting proper due diligence during the selling process and reviewing the right statistics is crucial to making such determinations.

 

Written by Transition Consultants

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