Whether you are buying or selling a business, one of the most important things to consider is the asking price for the business. While it is important to have a price that won’t turn buyers away without looking, you need to make sure it is a price that you are comfortable with and accurately portrays the value of the business. If you have never priced a business before, then you may not know what to look at when deciding what you should ask or offer. Make sure you consider the following three items so you can make a business decision that will help you make a purchase you can feel confident about when looking at a Dental Practice For Sale in Arizona. It can be the difference between a transaction you feel good about, and one that will lead to your financial demise.
Contract Sales : Consider the amount of sales the business has that are based on contracts. This means that you are the only person who can provide dental work to a set number of patients. This is a valuable customer base, and is a source of dependable income. This can add a great deal of value if the contract is set to last for a long duration of time.
Income Statement : Look at your total income statement. Make sure you compare this to any bills or expenses the business has. A Dental Practice For Sale in Arizona will have high overhead, so it is important that it has the income to counterbalance this. View all of the income statements you need to feel confident about the asking price you are willing to work with.
Inventory : Make sure you take the inventory of the items the business owns, including medical equipment and office equipment, into consideration. This should factor into the overall value of the company, and can help you determine a fair price. Any equipment that is old and may need to be replaced should be accounted for, as this will be a liability for the new owner once the transaction is complete.
If you want help determining the value of a dental office, then make sure you contact the professionals at Western Practice Sales. They can help you understand all of the financial documents and help complete the research to determine the most fair asking price. Let them show you how easy it can be to make an offer or set an asking price by calling them today.
