Wanting out? Wanting in?

Andy Acton discusses the steps and preparation needed to ensure an accurate valuation can be derived.

Each of the stages we go through in a valuation revolve around information, collecting it, analysing it and then using it give us a valuation. Initially it’s important to understand the driver for the valuation, perhaps a practice sale because you are downsizing to a smaller business, or retiring, or on the other hand hoping to buy your first practice, or progressing in your career and moving ‘up the ladder’. Other motivators may be to raise finance or for the introduction, or exit, of a partner in the practice. It’s also vital to understand the ownership structure from the outset.

Naturally, the valuation process involves collecting data about practice performance, so it’s important to ensure permission is gained from all owners of the practice (and its data) before anything is accessed. This is definitely not a case when it’s easier to ask for forgiveness than permission!