Medical businesses are a specific niche area of business valuation and there are very few business valuers in Australia who specialise in medical.
Businesses which are deemed to come under the medical businesses banner or categorisation include:
General practitioners
Physiotherapists
Chiropractors
Dentists
Podiatrists
Periodontists
Naturalistic health practitioners
Specialists
Medical centres
Wholesalers and distributors
Manufacturers.
How are medical businesses valued?
One way is a multiple of earnings, but another way is a multiple of revenues or billings. There are extremes in medical valuations according to the loyalty of customers, and the habitual nature of customer demand (seeing the practitioner two or three times a year …or seeing the specialist only once in a decade, etc) so the price-earnings ratios of medical businesses varies significantly. Whether the practice is in the country or the city is also an important factor in assessing value.
Rent Roll Valuations
Rent roll valuations are one of the most common valuations done by Business Valuer Network members. We value many real estate practices each year and have a broad database of