Practice Valuation Services

Practice Valuation Services

You know the daily operations of your practice. You know the clients and patients you serve. But do you know the value of your practice?

A practice’s value quantifies the many years of owner professional time and effort. Value is a continuum; it does not stop at any point. From the point of first practice acquisition to the final disposition of the remaining equity interest, a veterinary practice owner is inherently concerned with practice value.

Strategic Insight

One of the most important and powerful financial management tools you can implement is a regular practice appraisal, that coordinates the various attributes leading to a sound understanding of profitability and cash flow.

During our appraisal  procedures, revenue and expense trend analysis highlights opportunities for profit improvement. Regular measurement leads to thoughtful goal setting, supplementing strategic planning and corrective actions to take.

While historical data sets the stage for an appraisal, the real significance comes from our expert input and advice, leading to action-based changes for improved practice value over time. Annual or biennial updated analyses form an excellent foundation for operating and capital budgets, compensation planning, succession planning and more.

Equity Transaction Planning

Profit and cash flow are crucial to current fiscal health, and provide a measure of total owner return year by year that also translates into the expected entity value as a basis for potential transactions of entity interests.

While some practice owners might consider engaging an appraisal near to sale, we recommend beginning at least five years in advance of a planned sale or interest transfer.  If the value of the practice is low, give yourself adequate time to implement changes that can prove a higher value to potential buyers.

A practice appraisal involves a detailed analysis of most financial attributes, including real estate utilization, employee compensation, equipment and technology support, and intangible assets such as in-force legal contracts, reputation and community presence.

The purpose of practice appraisal for equity transfer seeks to establish a value at a specific date. Most owners find the process extremely useful for organizing information any prospective buyer and his or her advisors will request.

Due Diligence for Acquisition

We have years of experience in assisting buyers in understanding all aspects of practice ownership, including possible hidden defects in financial information and seller offerings.

Our primary concern with you as our client is establishing a fair price for a quality practice that will cash flow without you simply “buying a job”.   The practice’s ability to cash flow purchase debt and its operational needs is contingent on many factors, including preexisting contracts, tax structure, leasehold issues, financing terms, and much more.

We work with you to not only determine the practice value, but to assure you have a good working knowledge of budgets, cash flow, loans, working with attorneys, setting up accounting systems, and transitioning the reins.  We are a complete resource for entrepreneurial veterinarians and others seeking the rewards of practice ownership.

Commonly we provide “second” opinions on valuation reports prepared by others, with an emphasis on helping you understand the most important aspects of a proposed transaction. We will coach you in questions to ask and steps to take, to minimize risk and optimize your knowledge and time.

Why Engage Our Expertise

With many years of assisting our veterinary colleagues and their advisors in both the use and understanding of practice valuation methodology, we believe we are a superior resource.

Since we meet extensive continuing education requirements and actually prepare tax returns reflecting the aftermath of practice transactions, we are careful and thoughtful of  issues that might easily be overlooked. Every transaction has legal, tax and regulatory issues to be considered, before, during, and after. We understand and are wary of the risk, on your behalf.

We enjoy working with clients and their advisors, regardless of location in North America. Current web-based technology enables efficient collaboration on documents and spreadsheets.

Practice Valuation Use

  • Profitability Analysis
  • Strategic Planning
  • Compensation Planning
  • Organic and Greenfield Growth Planning
  • Succession Planning
  • Buying or Selling a Practice
  • Associate Buy-in/Principal Buy-out
  • Practice Mergers
  • Practice Acquisitions
  • Practice Unit Reorganizations, such as Mixed Animal practice
  • Financing and Refinancing
  • Estate Planning
  • Divorce Settlement
  • Arbitration, Mediation or other dispute resolution

Veterinary practice appraisals are powerful tools to acquire, monitor, and grow your practice.

Learn what your practice is worth and what areas you can take steps to improve that will offer greater value in the future.

When it comes to placing a value on your practice, experience and education do matter. Our trained valuation professionals have conducted numerous practice valuations and utilize regular appraisal and tax-based continuing education to keep their knowledge and skills up-to-date.

For more information and to discuss your specific needs, please contact: Rachel Forthofer, CPA,  at (440) 926-3800 or

Give your practice the advantage of working with the only CPA firm led by a DVM.

Talk with us! Our integrated consulting, accounting and tax services safeguard your practice and your family. Call Now! (440) 926-3800