{"href":"http://player.captivate.fm/services/oembed?url=http%3A%2F%2Fplayer.captivate.fm%2Fepisode%2Fb9d298f2-449e-4988-8db2-dd01b47eccd6","version":"1.0","provider_name":"Captivate.FM","provider_url":"https://www.captivate.fm","width":600,"height":200,"type":"rich","html":"","title":"15 Ways To Increase The Value Of Your Practice In 2 to 5 Years","description":"It will mainly be useful to you if you\u2019re looking to sell your business in 2 to 5 years.\nIt can also be something to think about if you\u2019re just \u201ctoying\u201d with the idea of selling your private practice.\nI got in touch with Paul Welk, an attorney over at Tucker and Arnesberg, on what private practice owners should start looking at if they want to exit.\n\nHe shared with me the following 15 selling points\n\n1. EBIDTA\n\nFirst thing to look at is your EBIDTA. This stands for Earnings Before Interest, Taxes, Depreciation and Amortization.\n\nIt\u2019s really a fancy way for accountants to describe your profitability. How much profit does your practice make a year?\n\nThere\u2019s a lot of technical information out there on EBIDTA, and there\u2019s no way to do the topic justice in this article.\n\n2. Multiple\n\nThe very next thing to think about is a multiple.The concept of a multiple is simple, you can think of it like this:\nValue of Business = EBIDTA (annual profit) x Multiple.\nThis multiple varies across industries. However in private practice it\u2019s determined by the size of your business.\n\nA smaller practice with an EBIDTA of $100,000 a year, may have a multiple of 3.\n\n3. Willingness To Remain\n\nIf you as an owner just wants to sell and leave, then this reduces the value of your business. Especially if you\u2019re doing a lot of patient care. This is because you have intrinsic value to the business.\n\nSo if you\u2019re doing the bulk of patient care and you aren\u2019t willing to remain, then you\u2019re going to have difficulty justifying the value of your business.\n\n4. Number of Locations\n5. Desirability of Location\n6. Diversity of Referral Sources\nThis is something we talk a lot about here at Breakthrough PT Marketing.\nIf you rely upon one orthopedic surgeon for referrals, then it isn\u2019t good for the value of your business.\n\nIf however physicians only make up a quarter of your referrals, and you have over 200 referral sources, then your business is of much more value to a buyer.\n\n7. Accounts Receivable and Aging\nThis is really about billing. If you have a lot of money owed to you, and it\u2019s old, let\u2019s say it was due 120 days ago, then this will harm the value of your practice. If however you are paid promptly and any money due is less than 30 days, then this will improve the value of your business.\n8. Owner Reputation\nThis is self explanatory. The higher your reputation, the more valuable your business.\n\n9. Staff\nIf you have a high staff turnover, and you\u2019re hiring a new PT every 2 months, then it\u2019s going to harm your value.\n\nPut yourself into the shoes of the buyer. Which would you rather have? A high turnover staff, or a stable staff who are good at their job, have integrity and are reliable?\n\n10. Non-Competes.\n11. Years in Business\n12. Profitability and Trending.\n13. Payer Mix.\n14. Growth Opportunity\n15. EMR Platform\n\nFor the full description visit: http://breakthroughptmarketing.com/15-ways-to-increase-the-value-of-your-practice-in-2-to-5-years/","thumbnail_width":300,"thumbnail_height":300,"thumbnail_url":"https://artwork.captivate.fm/84f4dfe9-bb30-4491-90c0-bd9a3546ee80/avatars-cohhduopmdn0rncw-l3b1vw-original.jpg"}