Powering Your Practice with a Business Valuation
One of the biggest misconceptions we hear at BizEquity is that business valuations are only necessary when an owner is preparing to sell his or her business.
The truth is, business owners should always understand the value of what’s likely their largest asset. Throughout the business lifecycle, business valuation plays an important role in critical financial decision-making, including business development planning, tax strategies, employee incentive programs, and ensuring adequate insurance.
For business-owning healthcare providers like physicians, dentists and orthodontists, who may be facing significant student loan debt while getting their practices off the ground, business valuation can be a determining factor in whether they’re able to obtain necessary funding for:
- Purchasing equipment and technology
- Buying or renting real estate
- Hiring new staff members
- Increasing marketing efforts
- Improving patient care
- Acquiring another practice
With an accurate business valuation, healthcare providers can achieve the following:
Prepare for Funding Options
Attract Investors
It’s important to understand that working with VC or PE firms typically requires the business owner to give up something in return. “For instance, with venture capital you’re probably giving up seats on the board, and some decision-making power. With private equity you’re giving up some equity in your practice in exchange for that funding,” explains Julianna Andrews, MBA, CFP, principal and co-founder of Atlanta Financial Associates.
Obtain Loans
Improve Business Performance:
Ultimately, growing your healthcare practice depends on knowing what it’s worth today. But typically, business valuations have been prohibitively expensive and time-consuming, costing up to $8K and taking two months or more to complete.
BizEquity streamlines the valuation process into seven easy, online steps, significantly reducing the cost and access to critical business knowledge. To learn more about starting your on-demand business valuation, click here.