Practice Valuations. Welcome To The Digital Learning Center. Today s Presentation. Course Faculty. Presented by. What s Your Practice Worth?
|
|
- Norman Fletcher
- 5 years ago
- Views:
Transcription
1 Welcome To The Digital Learning Center Presented by Your Partner In Building High Performance Practices Today s Presentation Practice Valuations What s Your Practice Worth? Course Faculty R. Thomas (Tom) Loughrey, MBA, CCS-P Chairman, CEO & Co-Founder of Economedix Certified Coding Specialist BS Degree from Pennsylvania State University Earned an MBA in Health & Hospital Administration from the University of Florida Former Hospital Administrator Former Owner of a Medical Billing Company Consultant to Physician Practices & Medical Societies Member of Various Professional Organizations Dealing with Medical Practice Management Developed and Presented Thousands of Seminars & Workshops Dealing with Practice Management 1
2 Today s Course Practice Valuation o Reasons to Value Your Practice o What Drives the Valuation o Review of Practice Assets o Review of Valuation Methodologies o Case Study - Example o Summary Reasons to Value Your Practice o The Purchase or Sale of The Entire Practice o The Purchase or Sale of a Portion of The Practice o The Allocation of Equity in a Merger o The Asset Allocation in a Dissolution o Estate Tax Planning Reasons to Value Your Practice o Financing Collateralization o Marital Dissolution o Claims of Fraud or Misrepresentation Following a Purchase o Bankruptcy o Compliance With Buy-sell Agreements 2
3 What Drives Value In a Practice? Location and Demographics Patient Persistence Dependence on Referrals Vs. Direct Patient Contacts Contractual Relationships Supply and Demand for Similar Practices Reputation What Drives Value In a Practice? Facilities and Technology Employees Physician s Work Habits Proportion of Business From Nonassignable Contracts (Managed Care) Potential for Ancillary Income What Are The Practice Assets? Tangible Equipment Supplies Real Estate Leasehold Improvements Cash Net Receivables Intangible Assets Contracts Patient lists and database Telephone number Favorable leases / location Trained and assembled workforce Goodwill 3
4 What Is Goodwill? Tends to be personal and may vary from one partner to another in a group Varies with the ability and willingness to transfer the goodwill from the seller to the buyer Requires the seller to be cooperative in introducing the buyer May take time and may vary depending on the nature of the valuation (such as a marital dissolution) Elements of Goodwill Earnings levels that can be expected in the future Competition Referral base Patient typology Work habits of the physician seller / buyer Fees earned compared to others Location of the practice Employees General marketability of the type of practice being sold Future Earnings What makes up the earnings or lack of them in the practice currently? How does the physician s income compare to the incomes of similar practitioners? What has been the historic growth of earnings? Will that rate continue? What environmental economic conditions can influence future earnings? 4
5 Competition How does the supply of physicians in the specialty in the area compare to national norms? What Are the demographics of the competing practices? What niches are underserved in the population and how is each competitor positioned for them? What market advantages and disadvantages exist for the practice? Referral Base What is the source of the current patient base? What is the status of the referring practices? What is the size of the referral base? What percent of patients are directed by their insurance plan to the practice? Is the contract assumable? Physician Work Habits How closely matched are the buyer and seller in terms of their work habits? How closely matched are they in terms of their practice style? (Bedside manner) Is there room for differences? What type of patient is attracted to the practice? 5
6 Financial Performance What percent of fees are collected (gross and net)? What is the delinquency rate on the receivables? How many days of charges are in the accounts receivable? How does all this break down by payer type? Practice Location Convenience for patients and doctors Aesthetics of the location Proximity to referral base Desirability of location for buyer s residence Community demographics Employees Can be a plus or a minus Creating a knowledgeable and trained workforce is time-consuming and expensive How long have employees been on the job? What is the likelihood they will stay? What are their pay and benefit levels? What contracts do professional employees have? Do the employees own the goodwill or does the seller? 6
7 Marketability How easy is it to enter the specialty in this locale without a purchase? What is the economy like in the area? What is the overall demand for the specialty in the area? Are other practice opportunities available in the same area? Valuation for Marital Dissolution Practice is not being sold so some factors in valuation are not considered (referrals for example) State court rulings require Goodwill be valued as part of practice assets (Lopez v. Lopez). Considerations include: Age and health of physician Demonstrated past earning power Professional reputation Comparative success Nature and duration of the professional s practice. Valuation Methodologies Income Approach Discounted Economic Return Capitalization of Economic Return Market Approach Multiple of Revenues Comparative Transactions Asset Based Approach Capitalized Excess Earnings Asset Accumulation 7
8 Discounted Economic Income Focuses on the differences in Net Cash Flows Assesses the difference between buying a practice with a known cash flow or just starting a practice from scratch Value is the net present value of the annual differences in cash Capitalization of Economic Income Focuses on the capitalization of pre-tax earnings after a fair salary is allocate to the physician and, Total earnings including the physician s salary The capitalization rate will be different for each method Requires astute determination of the capitalization rate and careful analysis of economic capacity of the practice. Multiple of Revenues This has been used often because of its simplicity It should not be used alone and is frequently calculated after another valuation methodology is used This method is often used to compare practices for sale. 8
9 Comparative Transactions This is not a formula in itself It places a value based on the valuations of other similar practices It assumes the practice in question is typical It usually compares the practice on the basis of multiples of revenues. Buy-ins often use a comparative methodology based on the buy-in formula from others in the group. Capitalized Excess Earnings Often used in Marital dissolution valuations Calculated based on Total Earnings Total earnings includes: Net income of the physician including salary and benefits plus Nonrecurring expenses less non-recurring income plus Excess expenses not related to the generation of practice income. Compare the Total Net income to the Net asset value of the practice using an industry rate of return. Capitalized Excess Earnings Example: Net Asset Value of $300,000 Earnings of $200,000 Return of 15% Earnings attributable to assets (.15 X $300,000) $45,000 Excess Earnings: $155,000 Capitalization rate of 25% ($155,000 / 25%) $620,000 9
10 Asset Accumulation This is another way of saying the value of the practice is the adjusted net worth of the practice considering tangible and intangible assets Requires accurate valuation of tangible assets and accurate evaluation of the intangible assets such as goodwill Rule of Thumb Methods The most common methodologies are comparatives using The Goodwill Registry It categorizes total intangible value as Goodwill Expressed as a percent of Revenues For example, Average Goodwill reported for General Surgery is 29.04% of revenues General Surgery Example Revenues of $800,000 Goodwill value of $232,320 (.2904 X $800,000) Net value of tangible assets: $200,000 Value of collectable A/R: $120,000 Total Value of the practice: $552,320 This method is often used as a simple way to determine value for a buy-in or buy-out It also used as a quick method for determining the value of two groups that may be merging so as to determine equity differences among the principals. 10
11 So How much is your practice worth? The answer is It depends Why is it being valued? What is the purpose? What are the circumstances? What is the time-frame? What are the numbers? Thank you for participating in this seminar presentation from Economedix! Please direct questions to To earn CME credits for this course please complete the Evaluation / CME Form and FAX it back to Economedix within 7 days of the teleconference. 11
Getting More Value for Your Practice
Getting More Value for Your Practice D A N I E L M. B E R N I C K, E S QUI R E, M B A T H E H E A LT H C A R E GROUP P LY M OUT H M E E T I N G, PA W W W. H E A LT H C A R E G R O U P. C O M Who We Are
More informationSelling Your Ophthalmology Practice. Financial Interest Disclosure 5/2/2016. Mark E. Kropiewnicki, Esquire, LLM* Daniel M. Bernick, Esquire, MBA*
Selling Your Ophthalmology Practice Mark E. Kropiewnicki, Esquire, LLM* Daniel M. Bernick, Esquire, MBA* The Health Care Group Plymouth Meeting, PA www.healthcaregroup.com * Financial Interest Financial
More informationPersonal vs. Enterprise Goodwill: Where Are We and How Do I Deal With It? By: Gary R. Trugman CPA/ABV, MCBA, ASA, MVS
Personal vs. Enterprise Goodwill: Where Are We and How Do I Deal With It? By: Gary R. Trugman CPA/ABV, MCBA, ASA, MVS Speaker Biography Gary R. Trugman is the President of Trugman Valuation Associates,
More informationIFRS Training. IAS 38 Intangible Assets. Professional Advisory Services
IFRS Training IAS 38 Intangible Assets Table of Contents Section 1 Overview 2 Introduction to Intangible Assets 3 Recognition and Initial Measurement 4 Internally Generated Intangible Assets 5 Measurement
More informationWIN-WIN PRACTICE TRANSITIONS. Chester J. Gary, DDS, JD MAXIMIZE VALUE, MINIMIZE RISK
TRANSITIONS WIN-WIN PRACTICE MAXIMIZE VALUE, MINIMIZE RISK University at Buffalo Dental Alumni Association Greater Buffalo Niagara Dental Meeting November 6, 2008 Chester J. Gary, DDS, JD Dentist, Attorney,
More informationA PODIATRY MANAGEMENT PANEL. Questions about Buying and Selling a Podiatry Practice. Dr. David Edward Marcinko; MBA CMP
A PODIATRY MANAGEMENT PANEL Questions about Buying and Selling a Podiatry Practice Dr. David Edward Marcinko; MBA CMP What overriding factors should one consider when shopping for a podiatric medical practice?
More informationBegin with the End in Mind
Begin with the End in Mind Len Jones, DVM CEO & Founder Nations fastest growing veterinary brokerage Total Prac*ce Solu*ons Group is na*onal brokerage company, made up of veterinarians, a
More informationValuation Issues and Divorce
Lori Wilhelmy, ASA 513.813.4134 LWilhelmy@ComStockAdvisors.com Valuation Issues and Divorce The valuation of a closely held business for divorce purposes is based on valuation theory, state statute and
More informationCOMMON ERRORS IN BUSINESS VALUATIONS
27th Annual 1995 FAMILY LAW REFERENCE BOOK Copyright 1995 Los Angeles County Bar Association No reproduction of this book may be made without the express written permission of the Family Law Section of
More informationConsiderations For Selling a Practice - Integration vs. Independent. Heather Delgado, J.D. Partner Barnes & Thornburg LLP
Considerations For Selling a Practice - Integration vs. Independent Heather Delgado, J.D. Partner Barnes & Thornburg LLP I have no relevant financial relationships with commercial interests to disclose.
More informationINTANGIBLE VALUE FACT OR FICTION
1 Define Intangible OUTLINE Outline Appraisal Concepts, Definitions and Issues Examine Legal Framework Examine Case Study Provoke Debate Declare Winning Argument (But the points don t matter) 2 One of
More informationNegative Goodwill and Bargain Purchases in Merger Models. An Extraordinary Gain to Go, Please
Negative Goodwill and Bargain Purchases in Merger Models An Extraordinary Gain to Go, Please Negative Goodwill and Bargain Purchases Can you explain what happens in an M&A deal if the Equity Purchase Price
More informationExit Strategies for a Medical Practice
Exit Strategies for a Medical Practice John D. Colucci, Esq., CPA McLane Middleton, PA Jonathan P. Gorski, CPA, MBA Edelstein & Company LLP June 12, 2018 Introduction John D. Colucci, a director at McLane
More informationTHE ART OF BUSINESS VALUATION
BUSINESS VALUATIONS GROWING THE ART OF BUSINESS VALUATION Douglas A. Michel, CPA/ABV, CVA & Alex E. Kummer, CPA, CVA, Clark Schaefer Hackett THE VALUE OF YOUR BUSINESS Steve Lumley, LGI CFO BUY SELL AGREEMENTS
More informationDETERMINING AGENCY VALUE PART 2
DETERMINING AGENCY VALUE PART 2 NORMALIZING THE INCOME STATEMENT By: Chuck Coyne, ASA This month we continue our discussion of how to determine an agency s value. Last month we briefly discussed some of
More informationPurchase Price Allocations ASC 805 Business Combinations
Purchase Price Allocations Introduction Mergers, acquisitions, and other business transactions have numerous accounting and tax implications. Buyers generally identify and report the fair values of the
More information5. The cost of buildings includes all necessary costs related to the purchase or construction
CHAPTER REVIEW Plant Assets 1. (S.O. 1) Plant assets are tangible resources that are used in the operations of a business and are not intended for sale to customers. Plant assets are subdivided into four
More informationReal-Estate BCBA. Board Certification in Business (BCBA) Valuation. Download Full Version :
Real-Estate BCBA Board Certification in Business (BCBA) Valuation Download Full Version : http://killexams.com/pass4sure/exam-detail/bcba QUESTION: 237 Which of the following is NOT a common category of
More informationAlways Accurate, Always on Time
Always Accurate, Always on Time Clearing the Air: Going-Concern Valuation vs General Valuation Knowing When you Can be Better Served by a More In-depth Valuation Expert Jan, 2015 Clearing the Air: Going-Concern
More informationAll Interested Parties. Rick Baumgardner, Chair Appraisal Practices Board. Date: September 9, Background
TO: FROM: RE: All Interested Parties Rick Baumgardner, Chair Appraisal Practices Board Concept Paper Valuation Issues in Separating Tangible and Intangible Assets Date: September 9, 2013 Background Those
More informationCopyright 2009 The Learning House, Inc. Fixed and Intangible Assets Page 1 of 13
Copyright 2009 The Learning House, Inc. Fixed and Intangible Assets Page 1 of 13 Introduction This lesson focuses on the long-term assets used to operate a company. These assets can be grouped into fixed
More informationChapter 7 ACQUIRING YOUR PRACTICE THE IMPORTANCE OF PURCHASER DUE DILIGENCE
Chapter 7 ACQUIRING YOUR PRACTICE THE IMPORTANCE OF PURCHASER DUE DILIGENCE Due diligence has been defined as "such measure of prudence as is properly to be expected from and ordinarily exercised by a
More informationPower Production Facilities: Lenders Need a UCC Insurance Policy for Full Coverage
The Leading Provider of UCC Insurance Power Production Facilities: Lenders Need a UCC Insurance Policy for Full Coverage AUTHOR A lender providing financing for power production facilities must be aware
More informationICAI VALUATION STANDARDS 2018
ICAI VALUATION STANDARDS 2018 Seminar on Valuation Standards and Rules at ICAI BKC C A B H A K T I S H A H 2 4 N O V 2 0 1 8 INTRODUCTION TO REGISTERED VALUER Section 247 of the Companies Act, 2013 ( Act
More information2016 Association of Accredited Small Business Consultants. All rights reserved.
BUSINESS VALUATION 2016 Association of Accredited Small Business Consultants. All rights reserved. This information is furnished with the understanding that the publisher is not engaged in rendering legal,
More informationChapter 6: Auto and RV Dealership Asset Valuation (Equipment)
Chapter 6: Auto and RV Dealership Asset Valuation (Equipment) Knowing how much the dealership s furniture, fixtures and equipment are worth will determine the amount of goodwill that is being paid as part
More informationSpecial Purpose Properties. Special Valuation Considerations
Special Purpose Properties Special Valuation Considerations 2017 Case Study in Ottawa: New Automobile Dealership Many brand-specific specialties Cost: $4,000,000 (including land and a developer fee) Sales
More informationPart 1. Estimating Land Value Using a Land Residual Technique Based on Discounted Cash Flow Analysis
Table of Contents Overview... v Seminar Schedule... ix SECTION 1 Part 1. Estimating Land Value Using a Land Residual Technique Based on Discounted Cash Flow Analysis Preview Part 1... 1 Land Residual Technique...
More informationValuation Spotlight: Is that Really Worth That?
Valuation Spotlight: Is that Really Worth That? Panelist: Panelist: Panelist: HUD/ORCF: Moderator: JP LoMonaco, MAI Valuation & Information Group Colleen Blumenthal, MAI HealthTrust Michael Baldwin, MAI,
More informationBUSINESS VALUATIONS: FUNDAMENTALS, TECHNIQUES AND THEORY (FT&T) CHAPTER 6
Fundamentals, Techniques & Theory COMMONLY USED METHODS OF VALUATION BUSINESS VALUATIONS: FUNDAMENTALS, TECHNIQUES AND THEORY (FT&T) CHAPTER 6 REVIEW QUESTIONS 1995 2013 by National Association of Certified
More informationValuing Specialty and Emergency Practices. Lorraine Monheiser List, CPA, CVA Summit Veterinary Advisors, Littleton, CO, USA
Valuing Specialty and Emergency Practices INTERNATIONAL VETERINARY EMERGENCY AND CRITICAL CARE SYMPOSIUM 2010 Lorraine Monheiser List, CPA, CVA Summit Veterinary Advisors, Littleton, CO, USA 2010 Used
More informationAMERICAN SOCIETY OF APPRAISERS. Procedural Guidelines. PG-2 Valuation of Partial Ownership Interests
AMERICAN SOCIETY OF APPRAISERS Procedural Guidelines PG-2 Valuation of Partial Ownership Interests I. Preamble A. Business valuation professionals are frequently engaged as independent financial appraisers
More informationProposed FASB Staff Position No. 142-d, Amortization and Impairment of Acquired Renewable Intangible Assets (FSP 142-d)
Financial Reporting Advisors, LLC 100 North LaSalle Street, Suite 2215 Chicago, Illinois 60602 312.345.9101 www.finra.com Mr. Lawrence W. Smith Director - Technical Application and Implementation Activities
More informationChapter 08 - Long-Term Assets. Chapter Outline
Section 1 Plant Assets I. Cost Determination Plant assets are tangible assets used in a company's operations that have a useful life of more than one accounting period. Consistent with cost principle,
More informationBefore Class starts.(make sure your name is on all submissions)
Before Class starts.(make sure your name is on all submissions) March 27 exam conflicts must be resolved before Spring break. Fourth Homework due Thursday 3/6 before class. Fifth Homework due 3/20 before
More informationConceptualizing Fair Market Value in Compensation Arrangements
Conceptualizing Fair Market Value in Compensation Arrangements Health Care Compliance Association Physician Practice Compliance Conference San Francisco, California September 9, 2005 Gregory D. Anderson,
More informationUniversity of Economics, Prague. Non-current tangible and intangible assets (IAS 16 & IAS 38)
University of Economics, Prague Faculty of Finance and Accounting Department of Financial Accounting and Auditing Non-current tangible and intangible assets (IAS 16 & IAS 38) 1FU486 IFRS David Procházka
More informationIAS 16 Property, Plant and Equipment. Uphold public interest
IAS 16 Property, Plant and Equipment Uphold public interest Background IAS 16 became operational in 1983 Major amendments have been made several times including 1998, 2003, 2008, 2012, 2013, 2014 The objective
More informationSales Associate Course
Sales Associate Course Chapter Seventeen Real Estate Investments and Business Opportunity Brokerage 1 Investment Analysis Most important consideration: Economic soundness Land use controls Zoning Deed
More informationTHIS ARTICLE IS SPONSORED BY THE MINNESOTA DAIRY HEALTH CONFERENCE.
THIS ARTICLE IS SPONSORED BY THE MINNESOTA DAIRY HEALTH CONFERENCE. ST. PAUL, MINNESOTA UNITED STATES OF MINNESOTA Professional Practice Transitions, L.L.C. CoDvrilrht 1996 ProfessionaI Practice Transitions,
More informationroots The Substance of the Standard Contents Changes to the Accounting for Goodwill for Private Companies
The Substance of the Standard MAYER HOFFMAN MCCANN P.C. AN INDEPENDENT CPA FIRM TM A publication of the Professional Standards Group February 2014 Changes to the Accounting for Goodwill for Private Companies
More informationMPEEM The New and Improved Residual Technique of Reserve Valuation
MPEEM The New and Improved Residual Technique of Reserve Valuation Prepared by Alan K. Stagg, PG, CMA Stagg Resource Consultants, Inc. Cross Lanes, West Virginia ABSTRACT The residual technique of reserve
More informationEN Official Journal of the European Union L 320/373
29.11.2008 EN Official Journal of the European Union L 320/373 INTERNATIONAL FINANCIAL REPORTING STANDARD 3 Business combinations OBJECTIVE 1 The objective of this IFRS is to specify the financial reporting
More informationAppraisers and Assessors of Real Estate
http://www.bls.gov/oco/ocos300.htm Appraisers and Assessors of Real Estate * Nature of the Work * Training, Other Qualifications, and Advancement * Employment * Job Outlook * Projections Data * Earnings
More informationAVA. Accredited Valuation Analyst - AVA Exam.
NACVA AVA Accredited Valuation Analyst - AVA Exam TYPE: DEMO http://www.examskey.com/ava.html Examskey NACVA AVA exam demo product is here for you to test the quality of the product. This NACVA AVA demo
More informationKEY ISSUES IN BUSINESS VALUATIONS FOR DOMESTIC MATTERS A VALUATION EXPERT S PERSPECTIVE. February 14 21, 2015 MSBA Punta Cana, Dominican Republic
KEY ISSUES IN BUSINESS VALUATIONS FOR DOMESTIC MATTERS A VALUATION EXPERT S PERSPECTIVE February 14 21, 2015 MSBA Punta Cana, Dominican Republic Presented by: R. Christopher Rosenthal, CPA /ABV, ASA, CFF,
More informationPlease find attached a brief overview of our services and an informative review of Chase Group s SBA-compliant business valuation services.
THE CHASE GROUP - Business Brokers Mergers, Acquisitions, Financing & Valuation Services 41185 Golden Gate Circle, Suite 202 Murrieta, CA 92562 951.541.0414 tel 951.303.8157 fax www.chasegroup.us 2012
More informationContract-Related Intangible
Income Tax Insights Valuation of Contract-Related Intangible Assets Robert F. Reilly, CPA The valuation of contract-related intangible assets is often an issue in matters related to income tax, gift tax,
More informationChapter 9: Long-Lived Assets and Cost Allocation
1 Chapter 9: Long-Lived Assets and Cost Allocation 2 Capitalize vs Expense Revenue Expenditures Merely maintain a given level of services Should be Expensed Debit Expense Capital Expenditures Provide future
More informationSTUDY OBJECTIVE 1 CAPITAL ASSETS
Collaboratively Created Collection of Chapter 10 Content STUDY OBJECTIVE 1 CAPITAL ASSETS Capital Assets are used throughout many cycles of a business and are reused over and over again. These assets are
More informationBefore Class starts.(make sure your name is on all submissions)
Before Class starts.(make sure your name is on all submissions) Fourth Homework due 10/27(MW) or 10/28(TR) before class. No exceptions. Help session 10/26 1:00-3:30pm in GBS130 Fifth Homework due 11/3(MW)
More informationPreface Table of Contents Chapter 1: Overview of the Liquor Store Industry... 13
Preface.................................................................... 3 Who Should Read This Book 3 Organization and Content 4 Chapter 4: Liquor Store Business Valuation 4 Acknowledgments 5 Contacting
More informationAdvanced M&A and Merger Models Quiz Questions
Advanced M&A and Merger Models Quiz Questions Transaction Assumptions and Sources & Uses Purchase Price Allocation & Balance Sheet Combination Combining the Income Statement Revenue, Expense, and CapEx
More informationBUSINESS VALUATIONS: FUNDAMENTALS, TECHNIQUES AND THEORY (FT&T) CHAPTER 1
Fundamentals, Techniques & Theory INTRODUCTION TO BUSINESS VALUATION BUSINESS VALUATIONS: FUNDAMENTALS, TECHNIQUES AND THEORY (FT&T) CHAPTER 1 REVIEW QUESTIONS 1995 2013 by National Association of Certified
More informationRESI Update 4 th Quarter 2016
RESI Update 4 th Quarter 2016 Supplemental Investor Information George Ellison, CEO Robin Lowe, CFO 2017 Altisource Residential Corporation. All rights reserved. Forward Looking Statements This presentation
More informationIdentifying and Valuing Intangible Assets More than just the Leftovers
Identifying and Valuing Intangible Assets More than just the Leftovers Joseph Omoworare Managing Director Duff & Phelps, LLC Dallas, Texas Joseph.Omoworare@duffandphelps.com Agenda I. Definition: What
More informationChapter 8, Part II: Intangible Assets
Chapter 8, Part II: Intangible Assets Characteristics Recognition, Valuation Purchased / Internally-created intangibles Patents, copyrights, trademarks Goodwill Research and development costs 1 Characteristics
More informationPresenting a live 90 minute teleconference with interactive Q&A. Today s faculty features:
Presenting a live 90 minute teleconference with interactive Q&A Goodwill in Corporate Asset Sales: Maximizing Tax Planning Opportunities Distinguishing Between Personal and Corporate Goodwill, Navigating
More informationAccounting for Tangible Capital Assets
Accounting for Tangible Capital Assets Date Approved by Board: 2011.11.17 Resolution No.: 11-113 2016.05.19 16-048 Lead Role: CFO Replaces: N/A Last Review Date: N/A Next Review Date: 2019.05.19 Policy
More informationCalifornia s Eminent Domain Law authorizes
Understanding Goodwill Appraisals By Patrick M. Millar, ASA Section 1263.510 of California s Eminent Domain Law authorizes compensation for loss of business goodwill to owners of businesses operating on
More informationIntangibles CHAPTER CHAPTER OBJECTIVES. After careful study of this chapter, you will be able to:
CHAPTER Intangibles CHAPTER OBJECTIVES After careful study of this chapter, you will be able to: 1. Explain the accounting alternatives for intangibles. 2. Record the amortization or impairment of intangibles.
More informationPHILIPPINE INTERPRETATIONS COMMITTEE (PIC) QUESTIONS AND ANSWERS (Q&As)
PHILIPPINE INTERPRETATIONS COMMITTEE (PIC) QUESTIONS AND ANSWERS (Q&As) Q&A No. 2011 06 PFRS 3, Business Combinations (2008), and PAS 40, Investment Property Acquisition of investment properties asset
More informationAnalytical Differences between Business Valuations, Unit Valuations, and Summation Valuations
Property Tax Valuation Insights Analytical Differences between Business Valuations, Unit Valuations, and Summation Valuations Robert F. Reilly, CPA Taxing authorities and property owners (and even some
More informationAccounting for Intangible Assets
Accounting for Intangible Assets 1 Examples: Goodwill- internally generated and acquired Trade mark and brand names- internally generated and acquired Patents Copyright Franchise Licenses Customer loyalty
More informationFor Sale The Edge - Coppell Office Campus. 121 Frontage Rd - SW Corner of Denton Coppell, TX. Nail & Key
For Sale The Edge - Coppell Office Campus 121 Frontage Rd - SW Corner of Denton Tap @ 121 - Coppell, TX About the development The Edge is a Class A office campus that was designed by O brien Architects
More informationBUSI 330 Suggested Answers to Review and Discussion Questions: Lesson 9
BUSI 330 Suggested Answers to Review and Discussion Questions: Lesson 9 1. Students should give a brief definition of each of the following terms and provide one example which illustrates how they are
More informationGeorgia Tech Financial Analysis Lab 800 West Peachtree Street NW Atlanta, GA
800 West Peachtree Street NW Atlanta, GA 30308-0520 404-894 - 4395 http://www.scheller.gatech.edu/finlab Dr. Charles W. Mulford, Director Invesco Chair and Professor of Accounting charles.mulford@scheller.gatech.edu
More informationACQUISITIONS OF SUBSIDIARIES AND DIVISIONS
ACQUISITIONS OF SUBSIDIARIES AND DIVISIONS First Run Broadcast: November 10, 2016 1:00 p.m. E.T./12:00 p.m. C.T./11:00 a.m. M.T./10:00 a.m. P.T. (60 minutes) Buying part of an operating company is entirely
More informationBusiness Valuation Methods. Submitted by Paul Marquez
Business Valuation Methods Submitted by Paul Marquez 59 I. BUSINESS VALUATION METHODS A. Rules of Thumb B. Asset-Based Methods of Valuation C. Income Statement Methods of Valuation D. Market-Based Methods
More informationFrequently Asked Questions:
Frequently Asked Questions: What makes a good associate dentist position? Answer: The most important factor in an associate role is how busy are you expected to be. The primary goals of most associates
More information* Are the Public and Private Capital Markets Worlds Apart? M. Mark Walker, PhD, CFA, CBA
WINTER 2007/2008 THE INSTITUTE OF BUSINESS APPRAISERS, INC. Business Appraisal Practice In this Issue Editor's Column - Does a Historical Average, Weighted or Otherwise, Constitute an Income Forecast?
More informationBusiness Valuation More Art Than Science
Business Valuation More Art Than Science One of the more difficult aspects of business planning is business valuation. It is also one of the more important aspects. While owners of closely held businesses
More informationAn intangible asset is an identifiable non-monetary asset without physical substance.
Technical Summary This extract has been prepared by IASC Foundation staff and has not been approved by the IASB. For the requirements reference must be made to International Financial Reporting Standards.
More informationPrepared by: Alex Socratous For My High School Students
Prepared by: Alex Socratous For My High School Students CHAPTER 2 CAPITAL ASSETS DEPRECIATION CAPITAL ASSETS Capital assets are long-lived assets that are used in the operations of a business and are not
More informationBroker. Basic Business Appraisal. Chapter 9. Copyright Gold Coast Schools 1
Broker Chapter 9 Basic Business Appraisal 1 Learning Objectives Describe the characteristics of the legal entities a business appraiser may encounter List at least 5 reasons for a business appraisal List
More information4/10/2012. Long-Lived Assets and Depreciation. Overview of Long-lived Assets. Learning Objectives (LO) Learning Objectives (LO)
Learning Objectives (LO) CHAPTER Long-Lived Assets and Depreciation 8 After studying this chapter, you should be able to 1. Distinguish a company s expenses from expenditures that it should capitalize
More informationRefinery Valuation & Litigation Issues: Past, Present, and Future
Refinery Valuation & Litigation Issues: Past, Present, and Future 2010 Texas Oil & Gas Association Property Tax Representatives Annual Conference Hyatt Regency San Antonio, Texas February 24, 2010 Agenda
More informationThe Cost of Property, Plant, Equipment
1 The Cost of Property, Plant, Equipment The cost of property, plant, and equipment includes the purchase price of the asset and all expenditures necessary to prepare the asset for its intended use. Land.
More informationCASE STUDY. Keyes Got 12,000+ Listing Leads with Flipt
CASE STUDY Keyes Got 12,000+ Listing Leads with Flipt Keyes Got 12,000+ Listing Leads with Flipt 1 CHALLENGES We want to stay ahead of competitors when it comes to home sellers - says Mike Pappas, President
More informationValuation Issues for Industrial Sites Income Approach Issues
ABA/IPT Advanced Tax Seminars Advanced Property Tax Seminar Thursday, March 17, 2005 Valuation Issues for Industrial Sites Robert F. Reilly Chicago, Illinois (773) 399-4318 rfreilly@willamette.com www.willamette.com
More informationACCOUNTING - CLUTCH CH. 8 - LONG LIVED ASSETS.
!! www.clutchprep.com CONCEPT: INITIAL COST OF LONG-LIVED (PLANT) ASSETS Plant Assets include,,, and RULE: Initial cost includes the price plus all expenditures to make an asset When recording the initial
More informationNAABB Business Broker Ownership Opportunity
NAABB Business Broker Ownership Opportunity North American Alliance of Business Brokers Owned & Operated by A.S. Radin & Associates Scott Radin, Founder & Owner & Trainer 18 Breezewood Drive * Orchard
More informationSyllabus. PRINCIPLES OF BUSINESS VALUATION Bachelor level
Coordinator: Svetlana A. Grigorieva Syllabus PRINCIPLES OF BUSINESS VALUATION Bachelor level Lecturers: Svetlana A. Grigorieva, Elvina R. Bayburina, Edgars Ragels (E&Y), Alexander E. Skorniakov (E&Y),
More informationAcquisition of investment properties asset purchase or business combination?
Acquisition of investment properties asset purchase or business combination? Our IFRS Viewpoint series provides insights from our global IFRS team on applying IFRSs in challenging situations. Each edition
More informationContact Us Roderick Faith 2627 NE 203 ST, SUITE 202 AVENTURA, FLORIDA 33180
1654 NE 205 Terrace Miami, FL: 33179 PH:305-999-0937 Fax:305-999-0938 E-mail:info@allfloridasigns.com DRAWING# DATE:08/24/09 SALES REP: DESIGNER: L. FERRER JOB# SCALE: AS NOTED Site Address: KLEAN POWER
More informationChapter 8, Part II: Intangible Assets
Chapter 8, Part II: Intangible Assets Characteristics Recognition, Valuation Purchased / Internally-created intangibles Patents, copyrights, trademarks Goodwill Research and development costs 1 Characteristics
More informationSelling to Your Employees Through an ESOP
April 18, 2008 Selling to Your Employees Through an ESOP Presented by: Mary Giganti Waldheger Coyne Dave Gustafson Moore Stephens Apple Bill Rosenberg Columbia Chemical Richard Tanner Ownership Advisors,
More informationBefore Class starts.(make sure your name is on all submissions)
Before Class starts.(make sure your name is on all submissions) March 27 exam conflicts must be resolved before Spring break. Your papers Fourth Homework due Today 3/6 before class. Fifth Homework due
More informationJoint Ownership And Its Challenges: Using Entities to Limit Liability
Joint Ownership And Its Challenges: Using Entities to Limit Liability AUSPL Conference 2016 Atlanta, Georgia May 5 & 6, 2016 Joint Ownership and Its Challenges; Using Entities to Limit Liability By: Mark
More informationReal Estate Reference Material
Valuation Land valuation Land is the basic essential of property development and unlike building commodities - such as concrete, steel and labour - it is in relatively limited supply. Quality varies between
More informationPURCHASING a PRACTICE
PURCHASING a PRACTICE SECTION 2 Valuation and Purchase of an Eye Care Practice SECTION 2 Purchasing a Practice Valuation and Purchase of an Eye Care Practice CHAPTER 8 CHAPTER 8 Lawrence Thal and John
More information2018 Tennessee Judicial Conference March 7, 2018 Montgomery Bell State Park
2018 Tennessee Judicial Conference March 7, 2018 Montgomery Bell State Park The Essentials of Business Valuation For Tennessee Judges (Why are the Experts so Far Apart?) Presented by: Robert Vance, CPA,
More informationWE MAKE YOUR HEALTHCARE REAL ESTATE WORK FOR YOU COMMON TRANSACTIONAL COMPLIANCE PITFALLS INVOLVING HEALTHCARE REAL ESTATE
WE MAKE YOUR HEALTHCARE REAL ESTATE WORK FOR YOU COMMON TRANSACTIONAL COMPLIANCE PITFALLS INVOLVING HEALTHCARE REAL ESTATE Common Transactional Compliance Pitfalls Involving Healthcare Real Estate Table
More informationNon-current Assets. Prof.(FH) Dr. Walter Egger
Non-current Assets Prof.(FH) Dr. Walter Egger IAS 38 Intangible Assets Intangible Asset Is an identifiable non-monetary asset without physical substance Identifiability Seperable (can be seperated, divided
More informationPrinciples of Accounting II Chapter 21: Record and Communicate Operational Investments
Principles of Accounting II Chapter 21: Record and Communicate Operational Investments Multiple Asset Purchases Allocate total purchase price among assets based on relative. Suppose you buy a building
More informationComparison of Selected Financial Ratios for the Pallet Industry. by Bruce G. Hansen 1 and Cynthia D. West
Comparison of Selected Financial Ratios for the Pallet Industry by Bruce G. Hansen 1 and Cynthia D. West Abstract This paper presents the results of a financial ratio survey conducted by the National Wooden
More informationUnleash The Power!
Unleash The Power! www.petroreport.com V a l u a t i o n P r o d u c t D e s c r i p t i o n www.petroreport.com Choice (A) $750 C-Store & Gas Station Property Evaluation Report MEETS FDIC INTERAGENCY
More informationGoodwill Valuation Considerations Involving Private Companies and Professional Practices
FINANCIAL VALUATION - Goodwill Valuation Goodwill Valuation Considerations Involving Private Companies and Professional Practices The valuation of either business (also called institutional) goodwill or
More informationTop Litigation Issues in Business Valuation
Top Litigation Issues in Business Valuation Wednesday, April 12, 2017 Noon 1 p.m. 1 General CLE credit TOP LITIGATION ISSUES IN BUSINESS VALUATION The materials and forms in this manual are published by
More informationacuitas, inc. s survey of fair value audit deficiencies August 31, 2014 pcaob inspections methodology description of a deficiency
August 31, 2014 home executive summary audit deficiencies improve pcaob inspections methodology description of a deficiency audit deficiency trends fvm deficiencies description of fair value measurement
More information