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    How to navigate dental practice transitions

    How do you determine the value of a dental practice? What should you pay? Navigating dental practice sales can be tricky, but there are tips that can help.

    There are shortcut approaches to determining the price to pay for the acquisition of a dental practice. An experienced advisor may know certain rules of thumb to give a quick insight into value.

    How much is the dental practice worth and what price should be paid?

     Those who are interested in a safe path to establish a value to finance an acquisition will retain a dental practice evaluator. Rules of thumb may be good for a quick view, but without the details learned in a formal valuation, thousands of dollars may be spent needlessly on the purchase.

    More from Bruce Bryen: 5 words that can impact a dentist's personal finances and financial future

    The “back of the envelope,” approach gives the dentist an idea, but spending little money for a valuation could be a disaster for the purchasing dentist in terms of future losses and mental anguish. Just like buying a home where an appraisal for proof of value and verification of the ability to lend against an asset is needed, the dental practice valuation will give pricing protection to the buyer and the capacity to have that acquisition financed.

    Trending article: The top 10 mistakes dental practices make

    It is important to know that a valuation for an acquisition will have a different format than one used for a divorce, partnership dispute, damage claim or other purpose.

    Continue to page two for more...

     

    Bruce Bryen, CPA, CVA
    Bruce Bryen is a certified public accountant with over 40 years of experience and is a part of RKG Tax & Business Services LLP, an ...

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