Selling

SellingMcDaniel & Scibal Consulting provide you with a licensed certified appraiser that is your one-stop resource for the tools and guidance you need to effectively purchase, sell or run your practice. We provide tools such as pre-sale advice, exit strategies, and management consulting services.

Questions to Consider When Selling a Practice

  • When is the right time to sell?
  • How much is my practice really worth?
  • How do I make it attractive to buyers?
  • How do I get paid?
  • Should I self-finance?
  • How long am I willing to help the buyer with transition?

Report Tailored to Your Practice

McDaniel & Scibal Consulting provides you with a business appraisal tailored strictly for optometrists, focusing on appraisals for sales, purchases, partnerships and mergers. Our primary goal is to provide you, our client, with a professionally prepared report with all of the details needed by professional advisors, such as accountants, lawyers, bankers, and consultants, in order to help negotiate the transition or transaction.

This kind of attention to detail, in documenting the analysis and calculations, means that you will have an easier time negotiating an asking price or offer price. Typically the lack of these details creates situations where the parties do not fully understand how the value was determined therefore throwing doubt as to the accuracy of the appraisal, sometimes resulting in the deal falling through.

Buy-Sell Transactions

McDaniel & Scibal Consulting specialize in appraisals for buy-sell transactions and offers both a full appraisal and a calculation report.

  • Full Appraisal: a 60- to 85-page report that does a thorough analysis of the practice financials. It compares key productivity indicators and trends as well as demographic studies in determining the value of the business. The primary methodologies used are the market approach (direct market data method) and income approach (capitalization of earnings method).
  • Calculation Report: The Debt Justification Method, an Income Approach, is used to compute the value of a business. Estimated cash flows are used to determine the amount of debt the practice’s net income and cash flows can support.

It’s important to note that calculation reports are more simplistic than appraisals and don’t identify how the differences in operating characteristics or assets from one company to another affect the valuation. The biggest difference between the reports is that a calculation report basically checks to make sure cash flow will support the price.

On the other hand, an appraisal evaluates how well the practice has done in the past and then makes a determination as to the level of risk involved in buying the practice. In general, calculation reports are good indicators of the value of practices that gross less than $450,000.

Optometrist and Certified Business Appraiser

Dr. John Scibal is fully certified by the Institute of Business Appraisers (CBA) and is also an experienced optometrist. That means that he knows your business inside and out and gives you an appraisal that is not only accurate and timely, but one that has considered all of the nuances of the business as only an experienced optometrist can.

Rely on McDaniel & Scibal Consulting.