Article by Mark Ridout, director of R A Valuation Services Ltd
If you’re a prospective buyer of an ophthalmic practice, you should not be pushed into thinking that an asking price represents a fair or even realistic open market value.
Despite your expertise as a clinician, you possibly have little, if any, experience in acquiring businesses. However, by following some simple steps and taking appropriate advice, you should be able to make a sensible choice.
Verify that you are paying a fair price for the business. Get it valued independently.
Buying a practice – no matter how large or small – is likely to be one of the biggest (if not the biggest) financial expenditures in life. And, statistically, it’s unlikely to happen more than once. As 80% of transfers fail in the latter stages of contractual arrangements due to disagreements over the financials (leaving costly legal and accountancy charges still to pay on both sides), it’s worth getting the ‘true’ value right in the early stages. The modest outlay of an independent valuation could save – at the very least – peace of mind but could well end up helping to save a small fortune.
For more information on R A Valuation Services, visit: www.ravaluationservices.com
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