It’s important to understand that there is a range of values that could be placed upon your business, depending upon the purpose of the valuation. Let’s talk about common levels and types of value and how and when these may apply. These valuation methodologies have been ranked from lowest to highest. Book Value Book value is simply the difference between the total assets and total liabilities of a business as they appear on your financial statement, specifically you balance sheet. Book … [Read more...]
Capital Gains Increase: Deadline Quickly Approaching
June 24, 2010 By Leave a Comment
As you are planning your short and long term strategy for you and your business, there is a change coming not too far down the road that you should know about. President Obama has publicly stated that he will let the Bush era tax program expire, and we will see an increase in capital gains from 15% to 20% as of January 11, 2011. As you know, the sale of a business (in most cases) triggers a capital gains tax on your "gain" from a sale. Depending upon your corporate structure (C-Corp, … [Read more...]
Strategic Plan Development- The Hows and Whys
June 21, 2010 By Leave a Comment
Creating a strategic plan for your business is one of the single most important steps in achieving success. This document will guide your actions and decisions, which will result in your business continuing to grow either organically or externally. For years, sports psychologists have recommended that you must have the ability to see yourself succeeding in order to actually succeed. In business, just as in sports, we must take the time to put on paper what we’d like to achieve. Strategic … [Read more...]
M&A Activity on Upward Swing Says M&A Source Conference
June 17, 2010 By Leave a Comment
I am between sessions at the M&A Source Spring Conference in Orlando FL and wanted to share some good information with you. (The M&A Source was established in 1991 to address the professional issues of merger and acquisition professionals. This organization currently has more than 250 cooperative intermediaries across the world.) The overall sentiment here is that the last two years for healthcare M&A have been the worst two years of the past ten, but activity and interest has … [Read more...]
Rehabilitation Business Measures: What Are Physical Therapy Practice Buyers Looking For?
June 8, 2010 By Leave a Comment
In March 2010, we did an informal survey specific to physical therapy practice buyers. What we found is consistent with business measures we’ve seen in previous times of acquisition activity. The top three criteria that rehabilitation buyers look for are: Physical therapy practices where the owners and/or management team will stay in place. The business of rehabilitation is primarily based upon relationships. With few hard assets, what a buyer believes they are purchasing are … [Read more...]
Mergers & Acquisitions Strong in Physical Therapy Industry
June 7, 2010 By Leave a Comment
There is really only one time that you can sell your company and that’s when there are buyers. It doesn’t matter your location, referral base, ideal EBITDA margin or how great your business is. If there are no buyers, you’re going to have a hard time selling. In the rehabilitation industry, there have been many dry spells. Fortunately, that’s not the case in 2010. After a two year low, merger and acquisition activity in the rehabilitation market is finally starting to pick up. What … [Read more...]
