On the importance of an accurate valuation By Simon Hughes

Most estate agents know that when the market for dental practices is up, as it is now, the two factors most likely to persuade you to sell through their company are the valuation price and their agency fees. It then follows that each agency you approach will naturally want to come up with the most attractive valuation.

Trusting the judgement of an agency whose sole viewpoint is to convince you to sell your practice through them can lead to lost time, wasted effort and great disappointment.

On the other hand, it would also be unwise to suggest that the judgement of someone who can only provide rigid and cold calculations is the final word. A practice is certainly worth more than its physical assets and patient base, or its monthly revenue minus the running costs.

The best solution, it seems, would be to turn to a company who can offer both marketing expertise and professional accountability; an agency that has been in the business of selling to people and banks for many years, and one that has professional accreditations to top that experience off.

When it comes to the sale of dental practices, there is only one company with such criteria, and that is Christie + Co – the only national firm that specialises in the valuation and sale of dental practices that is also accredited by the Royal Institution of Chartered Surveyors (RICS).

When you deal with a company that offers both years of real estate marketing experience and RICS accreditation, you strike the perfect balance. What the RICS, and companies and surveyors accredited with them ensure, is that when you sell your practice, the basis upon which you determine your pricing stands both the valuation test and the market test.

The valuation test is important because unless you’re selling your practice for cash to someone who doesn’t bother to bring their own surveyors in for another look, it will eventually have to be valued by an independent firm.

The market test is equally significant because the final selling price of your practice also depends of your agency’s knowledge of the market, and their knowledge of your potential buyer.

Selling your practice is essentially passing the trust and welfare of your patients onto the next person, and is naturally something that will be very close to your heart. This is not something that can be tackled with just pure intellect – accurate and impartial calculations also need to be made.

By turning to a company that understands both sides of the dental estate coin, you can be sure that all considerations are covered and your best interests as a seller are paramount.

BIO:

Simon Hughes joined Christie + Co in 1987 and has responsibility for the further expansion of its brokerage services into the Primary Care sectors of dentistry and GP surgery sectors. In the past three years, Christie + Co has advised, valued or sold almost £1 billion worth of businesses. Simon heads up a dedicated team of specialist advisors and agents based in regional locations throughout the UK.