PROFESSIONAL PRACTICE

HOW TO VALUE

Friday, 5 July 13

By professional practice we mean Dental and Medical Practices, Accounting and Law Firms, Engineering Consulting Companies, Architects, and other professional service firms. There are key differences between professional practice and other service businesses.

Professional Practice

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Difference Between Professional Practice And Service Business

Price Sensitivity

- The cost of the service is not as sensitive as non professional businesses.

- Client usually value their professional advisor so highly they will pay what it is worth to get the right advice.

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Difference Between Professional Practice And Service Business

Difference Between Professional Practice And Service Business

Professional Reputation And Skills

- Professional people rely on their skills to attract business. - In the early stages of the professional firm this is the key driver of the business.

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Difference Between Professional Practice And Service Business

High Intangible Asset Base

Since all assets within the professional firms are intangible, the owners must come up with a way of making those assets transferrable.

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Difference Between Professional Practice And Service Business

Client Relationship And Practice Sale

- Because of the nature of the client relationship, there is a high level of goodwill and trust flowing in this relationship. - As much as possible the owners must endeavour to make the relationship with the firm as important as the relationship with the person.

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Difference Between Professional Practice And Service Business

How To Built Value Into The Firm

- The way to build value into the firm is to standardise the service offering, systemise the business and then show that there is a “Service Ethic” running through the firm. - Its a bit like a franchise – you get treated the same way no matter who you are dealing with in the firm.

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Difference Between Professional Practice And Service Business

From Person To Brand Building the business in this way ensures that a purchaser or investor will feel comfortable that this level of service will be provided no matter who is providing it.

Lawyers Inc

AccountancyPartners

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Difference Between Professional Practice And Service Business

From Private To Public

Staff will want to buy shares in the entity and investors will be interested in buying in to the firm. This way you have overcome the problem of realising value when selling a professional service businesses

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Difference Between Professional Practice And Service Business

Referral

When your professional practice becomes a brand, you will attract more clients, grow your business and provide a nice nest egg for your retirement

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For Advice On Business Valuation

BCI Business Brokers

Tony Arena (Managing Director)

3/1 Alexander Street, Crows Nest, NSW, 2065

Phone: +61 2 94393399

Mobile: +61 411888148

tarena@bc.com.au

www.bc.com.au

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Maximise Business Value

www.bc.com.au/maximise.html

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Free Consultation

Find Out What Your Business Is Worth Now

www.valueabusiness.com.au

Friday, 5 July 13