Value

Everything has a value if someone is willing to keep it or buy it.  That includes reputation.

In the case of a chiropractic practice there is no question that the practice has a value whether large or small.  The value is dependent on what is being valued and all of the factors affecting its saleability.  Formulaes and equations for valuations of a practice are tossed around like spaghetti and in some cases they stick to the wall, sometimes to the dismay of the purchaser or seller.

Prior to any negotiation, a proper valuation of a practice should be undertaken.  The price for a practice whether created by the seller or the purchaser should be based upon a proper valuation and not just a figure pulled out of the air.  If bank financing is required for the transaction the finance company may require the valuation.  But not unlike a home inspection, the valuation is part of a due diligence process that has to be properly undertaken.

And remember, you almost always get what you pay for.  A $200.00 inspection will likely get you exactly what you paid and not much more.  The same relates to a practice valuation.   It is amazing that individuals buying a property for a half-a-million dollars more will balk at paying $1,000.00 for a home inspection.  The same applies to a business valuation.   So, be careful.

Have a great day.