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Published on: September 16, 2015
Practice evaluation and sale transactions: preserving value through economic turmoil
1Wutchiett Tumblin and Associates, 3200 Riverside Drive, Columbus, OH 43221-1725, USA. dtumblin@wellmp.com
Abstract:
There are several options to value a veterinary practice (market approach, asset approach, and income approach) and several methods within these approaches. Examples of an income-based approach include excess earnings, discounted future returns, and single period capitalization of earnings. A qualified valuator will use his or her professional opinion and experience to determine the most appropriate method for one's practice situation. This article outlines the excess earnings method for which where the principal components of value are net assets and goodwill.
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