Consultant’s Corner: Why You Need a Practice Valuation – Even If You’re Not SellingSubmitted by Areté | Fiduciary Financial Advisors to Dentists on October 26th, 2017
You may ask why is it important to know the value of your dental practice if you are not planning on selling it anytime soon. Typically, dentists have a practice valuation performed when they anticipate a practice transition in the near future. Often, a broker includes a practice valuation as part of the package for a practice listing.
We provide dentists with a comprehensive practice valuation for many reasons other than when a dentist is selling their practice, hiring an associate or adding a partner. The main reasons for a practice valuation aside from change of ownership or hiring an associate include planning for future needs, such as:
· Estate planning
· Financial planning
· Property and casualty protection
· For consideration when borrowing capital
· Personal protection planning
· Retirement planning
· Value protection for your practice
In the event of an unexpected death or disability, time is of the essence when it comes to listing your practice for sale and protecting its value. Planning in advance can greatly speed up the process of evaluating your practice and listing it for sale in such cases. Legacy's Practice Valuation Protection Program can help you be prepared.
Legacy will update your practice valuation annually. By keeping your practice valuation up-to-date annually and having the necessary estate planning documentation in place to authorize and direct your representatives to retain Legacy to assist in the sale of your practice in the event of your unexpected death or disability, Legacy will then be able to move quickly in listing and marketing the sale of your practice, thereby helping you (or your estate) to preserve and protect its value.
Catherine is a graduate of Temple University and is the founder and owner of The Etters Group since 2002; a dental consulting firm focused on serving the dental community with guidance in all aspects of the dental practice. Catherine joined Legacy Practice Transitions, Inc. bringing more than 30 years of experience, 20 of which as a dental consultant offering expert advice and strategies for building success in both general and specialty dental practices – solo, groups and multi-location practices.
With a nationwide presence in practice management consulting, Catherine specialized in practice transitions. She guided, and led dentists through major transitions and was a key associate in practice valuations and appraisals for a nationally recognized brokerage company before joining Legacy. Her expertise has been recognized worldwide through workshops and published materials and by mentoring and training other dental consultants.
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