Free Valuation Checklist

Use this Free Valuation Checklist to prepare for a Practice Valuation:

For Dental, Medical, Optometry, and Veterinary Practices

Provided by Valulitics

This checklist is designed to help owners of dental, medical, optometry, and veterinary practices prepare for a professional valuation. Gathering the following information and documents will ensure an accurate and comprehensive assessment of your practice’s value.

Financial Information

• Income Statements: Provide profit and loss statements for the last 3–5 years, including revenue, expenses, and net income.

• Balance Sheets: Submit balance sheets for the last 3–5 years, detailing assets, liabilities, and equity.

• Tax Returns: Include federal and state tax returns for the last 3–5 years.

• Accounts Receivable Aging Report: Detail outstanding receivables, categorized by age (e.g., 30, 60, 90+ days).

• Revenue Breakdown: Provide a breakdown of revenue by service type (e.g., procedures, consultations, product sales) for the last 3 years.

• Payroll Records: Include details of staff salaries, bonuses, and benefits for the last 3 years.

• Debt Schedule: List all outstanding loans, leases, or lines of credit, including terms and balances.

Operational Information

• Patient/Client Base:

  • Total number of active patients/clients (seen in the last 18–24 months).

  • New patient/client acquisition rate per year for the last 3 years.

  • Patient/client retention rate or churn statistics.

• Production Metrics:

  • For dental/optometry: Number of procedures performed annually (e.g., cleanings, exams, surgeries).

  • For medical/veterinary: Case volume by specialty or service type.

• Staffing Details:

  • List of all employees, their roles, tenure, and certifications.

  • Any key personnel critical to operations (e.g., lead veterinarian, specialized dentist).

• Equipment Inventory: Provide a detailed list of all major equipment, including age, condition, and maintenance records.

• Facility Details:

  • Lease agreements or property ownership documents.

  • Square footage, layout, and condition of the practice facility.

Market and Competitive Position

• Local Market Analysis:

  • Description of the local market (e.g., urban, suburban, rural).

  • Key competitors within a 5–10 mile radius.

• Unique Selling Proposition (USP): Highlight what differentiates your practice (e.g., specialized services, advanced technology, reputation).

• Marketing Efforts: Provide details on current marketing strategies, including online presence, social media, and patient/client outreach programs.

Legal and Compliance Documents

• Licenses and Certifications: Copies of all professional licenses, accreditations, and certifications for the practice and staff.

• Insurance Policies: Details of malpractice, liability, and property insurance policies.

• Contracts: Copies of vendor contracts, payer agreements, or managed care contracts.

• Regulatory Compliance: Documentation of compliance with industry regulations (e.g., HIPAA, OSHA, state veterinary/dental/medical board requirements).

Growth and Transition Potential

• Historical Growth Trends: Provide data on revenue and patient/client growth over the last 3–5 years.

• Future Growth Opportunities: Outline potential for expansion (e.g., new services, additional locations, untapped markets).

• Transition Plan: If applicable, describe any succession or exit strategy plans, including potential buyers or partners.

Additional Considerations

• Practice Reputation: Provide online reviews, patient/client satisfaction surveys, or testimonials.

• Technology and Systems: Document the practice management software, electronic health record (EHR) systems, and any proprietary technology used.

• Recent Improvements: Note any recent investments in equipment, facility upgrades, or staff training.

How to Use This Checklist

1. Gather Documents: Collect all listed documents and data in an organized format (digital or physical).

2. Review for Accuracy: Ensure all financials, operational metrics, and legal documents are up-to-date and accurate.

3. Consult with Valulitics: Contact Valulitics to schedule your valuation and submit the compiled information. Our team will use this data to provide a comprehensive valuation tailored to your dental, medical, optometry, or veterinary practice.

For further assistance, contact Matt Bournival - sales@valulitics.com or visit www.valulitics.com.