What Practice Sellers Need To Know About Cash Flow
Be aware of your Practices Cash Flow. You can determine yours by calculating some numbers from your Profit & Loss statement or Tax Returns. Take your bottom line profit or loss figure and add any interest, depreciation and officer compensation plus any personal items expensed through the business. Knowing your cash flow can provide you with a basic idea of what your practice is worth.
Practices are valued on a multiple of cash flow. For example, Dental Practice will sell for anywhere from 2 to 3 times cash flow. Although Cash Flow is vital, there are other factors and metrics that will go into determining the value of your practice. Top Line revenue will also be considered, but if there is no cash flow, buyers will question why and may not trust the financials.
Do you need help analyzing your cash flow? A good practice broker, like 1st Med Transitions can typically plug in the numbers and have feedback for you in a day or two. Knowing your Cash Flow is knowing your value!
1st Med Transitions, LLC is a privately held nationwide medical practice brokerage specializing in the Dental, Veterinary, Pharmacy and Optometry verticals. We are a leading edge medical practice transitions firm that provides a comprehensive set of advisory services to sellers and buyers of medical practices with collections from $500K to $20MM.
Our clients are primarily dentits, veterinarians, optomtetrists and pharmacists located throughout the United States. We believe that we have truly developed a "Smarter Way To Sell Your Practice!"
At 1st Med, we know the sale or acquisition of a practice can be a complex and emotional process for all parties involved. With our netowork of valuation experts, laywers, accountants and funding sources, 1st Med Transition provides our clients with every resource needed to complete a succesful practice transaction.
I'd Like To Sell My Practice
Selling a dental practice is no easy task, and this was the second time I was doing it within the last three years. I have to tell you that whole experience this time was a hundred times better than last time.
I really appreciate all the hard work you put in and all the hand holding you did when I needed it. If ever any of my peers or colleagues need to buy or sell a practice, you will come highly recommended from me for the wonderful job you have done.
KEY FACTS ABOUT 1ST MED TRANSITIONS, LLC
Companies in Florida
Broward County Companies
- Company name
- 1ST MED TRANSITIONS, LLC
- Filed Number
- FEI Number
- Date of Incorporation
January 15, 2015
Age - 5 years
- Home State
- Company Type
- Florida Limited Liability
1ST MED TRANSITIONS, LLC NEAR ME
- Principal Address
- 2641 E. ATLANTIC BLVD.,