In 2008 I wrote an article in Dynamic Chiropractic on the Chiropractic appraisal and below is what I wrote:
When Do You Need An Appraisal?
There are a variety of reasons doctors need to professionally appraise their practice. These needs are usually motivated by another party wanting to confirm the dollar value put upon the practice. The other party might be a buyer, future partner, departing partner, creditor or divorcing spouse. This party always is a person or organization looking to validate the integrity of the practice.
I am an active consultant in the national Chiropractic Buy/Sell arena, and see many Chiropractic brokers requesting the Seller to generate an appraisal as a marketing tool. I disagree with this technique. It may be an up sale item by the broker for financial gain. In my perspective, the broker and Seller have established an asking price. If the Buyer wants to challenge this price with a formal appraisal, it is their prerogative.
In my opinion a certified appraiser produce a large boilerplate report with an equally large fee. They view the practice not as a personality driven business but more of a retail business. They lack the knowledge of the profession. They are the ones wearing the certified appraiser lapel pin.
Choose an appraiser that is experienced, and credible by others in the profession. The appraiser should not only generate a report, but also defend the practice value to the adversaries if needed. Their fee should include the defense of their report to the opposition’s attorney, accountant or Seller.
About David Foster D.C.
Dr. Foster has practiced Chiropractic for the past 26 years and has co-owned 12 satellite practices. His undergraduate education includes a BS degree from Boston University with a major in finance and marketing prior to attending Life Chiropractic College.
With his acquired knowledge and experience Dr. Foster has consulted the Chiropractic community for the past decade in appraisals, Buy-Sell and Associate agreements in addition to a wide variety of legal, financial and strategic issues related to the business of Chiropractic.
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