Consider this for a minute…
Most of us have a 401k or IRA that we’ve been contributing to annually for many years. We don’t continue to blindly contribute to the fund or account and then when it’s time to withdraw, first LOOK at what it’s value amount is? That would be crazy!!! No, we look at it regularly and determine whether we keep contributing to it, or move to a new platform/fund, etc. Why would we wait until we are now ready to sell our practices and then get surprised when we are told what it is worth?
Most of us have a 401k or IRA that we’ve been contributing to annually for many years. We don’t continue to blindly contribute to the fund or account and then when it’s time to withdraw, first LOOK at what it’s value amount is? That would be crazy!!! No, we look at it regularly and determine whether we keep contributing to it, or move to a new platform/fund, etc. Why would we wait until we are now ready to sell our practices and then get surprised when we are told what it is worth?
If your practice is large or you have a multi-location situation, or a small group organization yourself, and it MAY be that you would be selling to a group/DSO, then the report will offer you and show you an FMV range – with the ‘lower’ end being what your FMV is if you sold ‘dentist to dentist’ and the ‘higher’ range being your FMV if it were to be sold to a group/DSO (as EBITDA differs based on the type of buyer and expenses they would incur and the multiple is also different)
