Practice Valuation
Due to higher payroll costs and lower reimbursement rates, many physicians choose to sell their practices to hospitals. We want to make sure that, if this is the path you choose, you get the best price for your practice that you can, taking into account how much work you put into building it from the ground up. Working with consultants, we will establish a business valuation, evaluating your business model, patient volume, and hospital contracts to get a full picture of your practice and its worth.
We can also help with helping you get more value for your practice than you would get through a straight cash transaction. In addition to the sale of the practice’s assets upon your retirement, there can be a separate sale of your personal goodwill associated with the practice. This encompasses your reputation as a physician and relationship with your patients and may be deemed an asset of the business when transferred along with the sale. On top of the value of the sale, the sale can create a long-term capital gain taxable at a lower rather than the ordinary income to the business, leaving the seller with more for every dollar of value for goodwill after federal taxes.
