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Appraisals

Know Your Net Worth, Understand Your Practice, and Improve Your Insurance Portfolio

As every dentist is aware, your practice represents a tremendous asset in your investment portfolio. And like any investment, the value of your practice is dependent on variables. Variables change. Investing in leaseholds and equipment can add value to a practice but depreciate with time. Revenue and expenses can fluctuate within a practice on a monthly, quarterly, and annual basis. Goodwill is the intangible asset that holds the greatest value but changes with buyer demand. Buyer demand, in turn, is affected by variables including practice cash flow, practice philosophy, affordability and current interest rates, lending availability, practice location, leaseholds and equipment, patient population, and other factors that are analyzed by our team in a concrete and formulaic approach to give the intangible asset of “practice goodwill” a justified value.

Different than most investments, the greatest impact on any variable in your practice is you, which gives you remarkable control over an incredible asset. You get to be the portfolio manager and the full board of directors in the investment of your practice. Being aware of the variables that affect your practice value and having an up to date value of your practice brings many advantages. Having an up to date appraisal of your practice gives you a closer estimate of your true investment portfolio value, allows a thorough analysis of practice function, and ensures a greater preparedness for sale should the unthinkable happen. Having an independent review of practice value based on day to day function is a profound tool in understanding the inefficiencies and processes that can be improved. Information from an appraisal can lead to added value in your practice, allow you to reflect and thoroughly understand the behind the scenes function of your office, and, potentially increase your take home income.

Our recommendation is to have your practice appraised on regular intervals and well in advance of your decision to transition out of ownership. With what we as dentists will spend on a Continuing Education course in a weekend, the value of a practice appraisal can often result in immediate gains without instituting any new technology or major change, but with simply refining the processes already in place. And you don’t need any time out of the office to have it completed! When we consider how well insured we need to be as dentists- professionally and personally- an up to date appraisal only adds another often-neglected policy, adding safety and preparedness for your family, your team, your patients, and yourself.