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What is the Basis of Practice Value? (Part II: Calculating Earnings)

– Doyle Watson, DVM, Simmons Southeast In another article, we have discussed the calculation of “Adjusted Net Cash Flow.” This is the amount remaining from gross revenues after necessary operating expenses are met. It is the amount available to the owner to spend at the owner’s discretion. The debt service and owner/chief of staff’s (COS) […]

How Does the Real Estate Effect the Practice Value?

– Dave Gerber, DVM, Simmons Northwest With the exception of mobile practices, every veterinary practice must have a facility in which to operate. The cost of the facility, either rented or owned, is a real expense to the practice when considering profit. In essence, there needs to be a “rent” figure as an expense on […]

What is The Basis for Practice Value? (Part I: Establishing Cash Flow)

– Doyle Watson, DVM, Simmons & Associates Southeast It continues to impress me the number of times I hear veterinary practice value being based solely upon some percentage of gross income. This concept is often suggested by some finance companies as well as veterinarians, but rarely by those who are familiar with business appraisal methodology. […]

What Determines Veterinary Practice Value?

– Dave Gerber, DVM, Simmons & Associates Northwest In reality there are many factors, both financial and other qualities that contribute to practice value. After all, the true value is simply what a willing buyer is willing to pay and those decisions are based on many, many things. Unfortunately, we still see practitioners, and even […]