Join Andrew Acton, a dental business adviser with deep expertise in valuing UK dental practices, as he navigates the complex world of practice valuations. He breaks down the importance of goodwill and financial metrics, like EBITDA, while highlighting non-financial factors such as team dynamics and location. Acton shares insights on leveraging social media for patient attraction, exploring emerging platforms like TikTok. Throughout the discussion, he emphasizes the power of comparables and the significance of a solid reputation in determining practice value.
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insights INSIGHT
Comparables Drive Valuation Differences
Valuations vary mainly because of the quality and relevance of comparables used.
A good, up-to-date database of similar sales narrows valuation differences significantly.
volunteer_activism ADVICE
Base Valuation On Reconstituted Net Profit
Use three years of accounts and current management information to identify trends and true income.
Reconstitute net profit by adding back owner-specific costs to show the buyer's likely cash.
volunteer_activism ADVICE
Include Nonfinancial Factors In Valuation
Assess non-financial factors like location, team, accessibility and marketing alongside numbers.
Combine these with comparables to produce a three-dimensional valuation view.
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——————————————————————— Experience the thrill of exploring the often debated world of practice valuations in the dental industry with our knowledgeable guest, Andrew Acton. We break down the complexities of intangibles like goodwill, reconstituted net profit, and how they contribute to the overall value of a practice. Andy Acton from The Dentology - The Business of Dentistry Podcast shares some insightful perspectives on the importance of a quality database of comparables and the motivations that drive practice owners in their valuation quests.
Venture further into the intricacies of EBITDA calculation and management information to uncover the true income of a practice. We shed light on the non-financial factors that shape practice performance, including location, team dynamics, marketing strategies, and the influence of social media. Andrew underscores the importance of reference points, highlighting the need to compare data with similar practices to get a fair assessment of a target practice's value.
We've got you covered if you've ever wondered about the power of social media as a tool for attracting patients to your dental practice, discussing the potential of emerging platforms, like TikTok. Andrew also enlightens us on the concept of 'attention as currency' and how a good reputation can tip the scales in your favor. We round-off with a deep dive into the role of location in practice valuations, the impact of property tenure on sale price, and the essential tips on optimizing valuation and selling practices. Get ready to unravel the mystery of practice valuations with this insightful discussion.
——————————————————————— Disclaimer:All content on this channel is for education purposes only and does not constitute an investment recommendation or individual financial advice. For that, you should speak to a regulated, independent professional. The value of investments and the income from them can go down as well as up, so you may get back less than you invest. The views expressed on this channel may no longer be current. The information provided is not a personal recommendation for any particular investment. Tax treatment depends on individual circumstances and all tax rules may change in the future. If you are unsure about the suitability of an investment, you should speak to a regulated, independent professional.
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