Every practice is unique as well as the different factors buyers will look at when trying to establish a value for the practice. A few of the key components most buyers will review when looking at purchasing a practice include, but not limited to:
- Location – (rural or metro area)
- % of net income
- Average billing rates
- Quality staff in place
- Is the practice portable or does the buyer need to maintain the space
- Last 3 years of financials and which way the business is trending
- Key client make-up
- % of accounting, tax, audit, other services provided
- Average fees per client