Praxis provides Full Appraisals to our buyer clients for free, and can provide Full or Advisory Appraisals as a separate service to non-clients for a competitive fee. The Advisory Appraisal is an abbreviated option that reviews the seller's appraisal to examine the fairness of the price and feasibility of the opportunity in relation to your potential income and expenses.
Being totally immersed exclusively in the veterinary industry provides us with the perspective necessary to render accurate and comprehensive valuations. We have an incredible reputation for providing an accurate veterinary practice valuation based on our nearly 30 years of experience in the practice transition industry.
A veterinary practice appraisal assesses the profitability of the veterinary practice and the risk associated with the practice's ability to maintain that profitability. The value of a practice must be determined during a sale in order to set a fair and accurate price. A veterinary practice appraisal can provide a second opinion on the purchase price when looking to buy a practice.
We use an income-based approach that determines value by capitalizing earnings. While numbers largely determine the price, Praxis considers many other factors that will ultimately affect the value and price. We determine net cash flow by analyzing tax returns and making adjustments for owner compensation and perks, capital improvements, one-time expenses, and those unrelated to daily practice operation. Next, we determine the practice's value by applying appropriate income methods of valuation to the earnings. Finally, we consider market factors such as sales data, return on investment, buyer financing, and buyer personal cash flow before reaching our final opinion.
If you need practice valuation assistance but are not ready for a veterinary practice appraisal, we will still answer any questions you may have. Feel free to schedule a confidential, complimentary call to discuss your particular situation.