Professional Practice Sales and Services, LLC
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Valuations are needed for a variety of reasons. In a practice sale, it is necessary to arrive at an asking price for any practice that is put on the market. We have a variety of valuation products, but our most popular product is the Opinion of Sale Price or Pricing Model Based upon Cash Flow. We also do 2nd Opinions on existing valuations from other sources under a consultation relationship. Generally, it takes a minimum of two hours of consultation to review and comment on an existing appraisal, but it is based upon time actually taken. We can also issue a written letter on our 2nd Opinion, if that is what is needed. The full appraisal is the least sought after valuation product, but it is the most thorough and the most detailed. It is generally reserved for the situations where great detail is needed.
Opinion of Sale Price or Pricing Model Based Upon Cash Flow
This product justifies a price for a practice based upon its past financial performance and reasonable assumptions of continued performance into the future. It assumes the practice will basically operate the same in the future as it has in the past. It uses popular methods of appraisal, and the experience of the author to arrive at a price that can be justified. It also justifies a price based upon servicing anticipated debt for practice and real estate, while at the same time insuring a reasonable salary for the professionals clinical skills and management. Turn-around time is relatively quick (10-15 working days from the time that all information and documentation is received). Cost is $1500.00 paid in advance. Estimates of equity for stock sales can also be made with additional work, calculations and fees (an extra $400.00). This product does not conform with USPAP standards and the report is in an outline format. A site visit is not included and the opinion is based upon a limited review of the operational characteristics of the practice. The opinion may be given as an advocate or as an independent opinion, though the circumstances of the opinion will be stated in the report. To request an Information Packet to have an Opinion of Sale Price or Pricing Model Based On Cash Flow, click here.
Full Appraisal
This is a detailed review and assessment of the value of the practice under the definition of fair market value. The report is written in conformance with USPAP standards and generally is 50-100 pages in length. It values the practice using the three approaches to value and reconciles value based upon what can be justified with the methods employed. It generally will assess the relative importance of professional and practice goodwill and make an assessment of its impact upon the value conclusion and is always performed as an independent opinion. This product is best suited for very detailed analysis of the practice for sale purposes, divorce, eminent domain work or other high profile engagement where detailed analysis and documentation is needed. An on site visit is required. Cost is $7500.00, plus expenses for time in travel and travel costs and lodging associated with the on-site visit. The time required to completed report is generally 6 to 8 weeks from when all the information needed is received. Payment is made in the form of an initial retainer with the remainder to follow just before shipment of the full report. Generally a verbal opinion will be given before issuance of a final opinion in report form. If there is a need for expert witness testimony beyond the initial valuation engagement, separate written engagement letter must be given and additional fees will be required. To request an Information Packet to have a Full Appraisal, click here.
Valuation Consultation
Sometimes there is a need for discussion relative to the issues, circumstances, basis of value and how they relate to a particular practice or a review of an appraisal or price opinion that has been performed by another party. When this occurs we will generally review and discuss the appraisal issues or report on a consultation basis under an hourly fee arrangement at $180.00/ clock hour. A 2nd opinion of value or price review and discussion generally takes 1-1/2 to 4 hours, and if we anticipate a longer period, we will generally forecast the anticipated time for the engagement in advance after receiving the report to be reviewed. A 2nd opinion letter may be requested with this service, as well. To request Valuation Consultation, click here.
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