Member-only story

The BVR Guide to Physician Practice Valuation: A Comprehensive Review

Dennis Hayes

·19.3k Followers· Follow

Published in BVR S Guide To Physician Practice Valuation

5 min read

622 View Claps

60 Respond

Save

Listen

The BVR Guide to Physician Practice Valuation is a comprehensive resource for professionals involved in the valuation of physician practices. Published by Business Valuation Resources (BVR),a leading provider of business valuation software and services, the guide provides a step-by-step approach to valuing physician practices, covering the key principles, methods, and data sources.

BVR's Guide to Physician Practice Valuation

by Luigi Pirandello

4.4 out of 5

Language	:	English
File size	:	9944 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	109 pages

Key Principles of Physician Practice Valuation

The valuation of physician practices is a complex process that requires an understanding of the unique characteristics of medical practices. Some of the key principles that guide the valuation process include:

Fair market value: The fair market value of a physician practice is the price that a willing buyer would pay to a willing seller in an arm's-length transaction.
Going concern: A physician practice is typically valued as a going concern, meaning that it is assumed to continue operating in the foreseeable future.
Earnings power: The earnings power of a physician practice is a key factor in determining its value. This is typically measured by the practice's net income.
Risk: The risk associated with a physician practice is another important factor in determining its value. This risk is typically assessed based on factors such as the practice's financial stability, the competition in the market, and the regulatory environment.

Methods of Physician Practice Valuation

There are several different methods that can be used to value a physician practice. The most common methods include:

Income approach: The income approach values a physician practice based on its future earnings potential. This is typically done by capitalizing the practice's net income or by using a discounted cash flow analysis.
Market approach: The market approach values a physician practice based on the prices of similar practices that have been sold recently. This is typically done by using comparable sales data or by using a market multiple.
Asset approach: The asset approach values a physician practice based on the value of its assets, such as its equipment, furniture, and accounts receivable. This is typically done by using a liquidation value or by using a going concern value.

Data Sources for Physician Practice Valuation

The data sources that are used to value a physician practice can vary depending on the method that is being used. Some of the most common data sources include:

Financial statements: The financial statements of a physician practice provide information about its income, expenses, and assets.
Tax returns: The tax returns of a physician practice can provide information about its income, expenses, and deductions.
Practice management software: Practice management software can provide information about the practice's patient volume, appointment schedules, and revenue.
Comparable sales data: Comparable sales data can provide information about the prices of similar practices that have been sold recently.
Industry data: Industry data can provide information about the overall healthcare market and the specific market for physician practices.

The BVR Guide to Physician Practice Valuation: A Valuable Resource

The BVR Guide to Physician Practice Valuation is a valuable resource for professionals involved in the valuation of physician practices. The guide provides a comprehensive overview of the key principles, methods, and data sources for valuing physician practices. It is an essential resource for anyone who needs to understand the process of physician practice valuation.

The valuation of physician practices is a complex process that requires an understanding of the unique characteristics of medical practices. The BVR Guide to Physician Practice Valuation provides a comprehensive overview of the key principles, methods, and data sources for valuing physician practices. It is an essential resource for anyone who needs to understand the process of physician practice valuation.

BVR's Guide to Physician Practice Valuation

by Luigi Pirandello

4.4 out of 5