What is the Value of Dental Practice Appraisals?

In this video, Dr. Suham Alexander asks Timothy Brown, President and CEO of ROICorp, to give dentists the basics on practice appraisals.

A is for APPRAISAL

All owners should have their practice(s) appraised at regular frequencies. An appraisal is a document that supplements other relevant and important personal and professional documents, including wills, financial statements etc. The document can be used for various purposes such as insurance, divorce settlements, disability or death amongst others and most obviously, practice sales. The document is not actually written for the owner but, for the intended reader.

B is for BROKER

The appraisal document is not to be taken lightly and much work and preparation is involved. Brokers are well-qualified and well-tuned to the particulars of the dental industry and thus, have the necessary skill, experience and expertise required in the appraisal process.

C is for CAPTURED CONTENT

The content captured in an appraisal ultimately determines the base value of a dental practice.

• Leaseholds
• Technology investments
• Inventory of equipment
• Financial statements
• Production and other detailed reports related specifically to the individual practice
• Goodwill

In short, a thorough appraisal carried out by a qualified broker is an essential asset for each and every dental practice owner.