Buying or selling a podiatry practice may be something that you as a podiatrist do once in your life, if at all. Given this, I recently prepared a guide for the American Podiatric Medical Association (APMA) that presents an overview of the process of buying or selling a podiatry practice, from pre-transaction planning to post-closing considerations. In the January/February 2018 issue of APMA News, I also authored an article that provides a high-level overview of one component of that guide—the valuation of a podiatry practice.
As discussed in the article, buying or selling a podiatry practice is a big deal, and valuing the practice being acquired or sold is one piece of that process. That said, it’s often one of the most, if not the most, discussed components of the transaction. Three different approaches are applied in the valuation of companies – the asset approach, income approach and market approach. In the article, I define and explain each approach and how each is considered in the valuation of a podiatry practice.
You can read the article here.