Valuation Tips for Physicians Valuation Tips for Physicians Welcome to our web page designed specifically for the needs of physicians with respect to valuation. The text below includes links to other pages on our website where you will find detailed discussion of many of the issues mentioned briefly here. At a variety of points during their careers, physicians are concerned about the value of their own or another physician s practice. The first encounter with this issue is typically when a physician is offered an opportunity to buy into a practice with which he or she has been an associate. The most basic issue, of course, is the purchase price.
Any special conditions imposed by the seller are equally significant.
The impact of the buy-in payments on the buyer s take home compensation and the period of time over which it must be paid are the remaining issues we will address. If the seller has retained a valuation consultant, some form of report should have been prepared which should be made available to the buyer. Reports come in many formats. Formal valuations can be costly and in some cases not necessary for the purposes of the buy-in. A good compromise is a written report, which summarizes the salient features of the practice, describes the valuation methodology employed and the valuation conclusion.