Business Valuation for Buying an Urgent Care
The medical field is one of the most consistent industries in the country. In good times and in bad, people get sick and need medical attention. Buying and owning an urgent care business is a great way to profit from this resilient industry. If you are looking at buying an urgent care business, a valuation for buying an urgent care is a great place to start.
Peak Business Valuation, business appraiser, values hundreds of businesses for purchase every year. With an urgent care business valuation from Peak, you will better understand the value of an urgent care business. You will also understand an urgent care’s value drivers and risks and how to maximize its value. Schedule a free consultation with Peak below to learn more about how to value an urgent care.
What is a Business Appraisal for an Urgent Care Business?
A business appraisal for an urgent care is an analysis of the value and financial standing of an urgent care. Valuation experts use financial statements to complete an urgent care valuation and determine its fair market value. This information is extremely useful to those looking to buy an urgent care business. Knowing the worth of an urgent care can help you make informed decisions during the buying process. See Valuing an Urgent Care to learn more.
Urgent Care Valuation Methods
During a valuation for buying an urgent care, valuation professionals use a combination of valuation techniques. By doing so, business appraisers can value an urgent care business according to its unique circumstances. The most common valuation methods are the income approach, the market approach, and the asset approach.
The income approach values a business according to its current and future income potential. The income approach also accounts for risk factors in income projections. Within the income approach, business appraisers can use the discounted earnings method or the capitalization of earnings method. You can learn more about these methods by reading The Income Approach Made Simple.
The market approach values a business in comparison to its competitors or similar businesses. This approach is most similar to a common real estate appraisal. Business appraisers use valuation multiples for the industry and compare a business to other similar businesses that have recently sold. Check out The Market Approach Made Simple and Valuation Multiples for an Urgent Care to learn more.
The asset approach values a business by assessing the value of its assets. This approach is especially useful for very asset-heavy businesses. The asset approach is less commonly used than the previous two methods but is still important to understand and implement. Read The Asset Approach Made Simple to learn more.
Negotiating a Fair Purchase Price for an Urgent Care Business
Buying a business can be expensive. Negotiating a fair purchase price is an essential step in buying a business. Failing to negotiate the purchase price can add unnecessary expense and decrease profits. A valuation for buying an urgent care business can help negotiate a reasonable purchase price. Using an urgent care business valuation also increases transparency between the buyer and seller because they both understand the fair market value of the urgent care business. Read Negotiating a Purchase Price of a Business for more information.
Building a Strong Urgent Care Business Plan
After the purchase of an urgent care business, creating a business plan is critical to long-term success. A well-made urgent care business plan will consistently increase the value of an urgent care. Using an urgent care valuation will strengthen your business plan. You will be able to address risks and implement key value drivers from the beginning, thus making future decisions easier and more profitable. Check out Using a Business Valuation for a Business Plan to learn more.
Understanding Opportunities of an Urgent Care Business
An urgent care business valuation determines the opportunities as well as the market value of an urgent care business. These opportunities, also known as key value drivers, are areas that an urgent care business can leverage to maximize its value. Check out Value Drivers for an Urgent Care to learn more. Some common value drivers for an urgent care business are listed below.
- Low Wait Times
- Online Presence and Telehealth
- ‘Recession-Proof’ Business
- Physical Location
When valuing an urgent care, a business appraiser analyzes key value drivers and assesses them compared to industry averages and the competition.
Identifying Risks of Buying an Urgent Care Business
A valuation for buying an urgent care also evaluates the risks involved in owning an urgent care business. Understanding risk factors and how they change the value of an urgent care business is important for business owners. Identifying and planning for risk increases the value of an urgent care business and makes operations less stressful. Some risks of an urgent care business are:
- Expensive, Skilled Workforce
- Third-Party Payors
- High Government Regulations
- Increased Consolidation
With a valuation for buying an urgent care from Peak, you can better prepare for risks in an urgent care business. Not addressing risk is one of the fastest ways to decrease the value of a business. An urgent care business valuation from Peak Business Valuation will identify specific risks in an urgent care business. Reach out today and schedule a free consultation to discuss risks and key value drivers in an urgent care business.
Securing Financing for Buying an Urgent Care Business
If you are looking to buy an urgent care, you are assuredly also looking for the right loan to do so. Buying an urgent care business is costly, and that cost can increase with an unfavorable loan. Many business owners turn to the Small Business Association (SBA) when securing financing for their business. The SBA offers loans with favorable terms such as low down payments, low interest rates, and flexible repayment options.
It is common for SBA lenders to require a professional business valuation as part of an SBA loan application. Peak Business Valuation is happy to provide you with a professional SBA business valuation for buying an urgent care business. Additionally, Peak works with over 90 SBA lenders nationwide. We can connect you with an SBA lender that is right for you. See also SBA Loans for Urgent Cares.
Obtaining an Urgent Care Valuation Report
As part of an urgent care business valuation, you will receive a complete valuation report. The valuation report is essentially a summary of the urgent care business valuation. This is where you will find the risks, opportunities, strengths, and weaknesses of an urgent care business. It also includes the fair market value of an urgent care. Using the valuation report will help you make strategic decisions to maximize the value of an urgent care.
Conclusion
Buying a business can be stressful and full of unknowns. If you are not properly prepared, it can also be financially straining. If you are looking to buy an urgent care business, an urgent care valuation is a must-have. With a valuation for buying an urgent care from Peak, you can understand the value of an urgent care business and adequately prepare for the buying process.
Peak Business Valuation, business appraiser, has years of experience valuing small businesses. Our team of valuation experts values businesses across all industries. They also have experience working with business owners to guide them through the valuation report and help them maximize the value of their business. If you are ready to get started or would like to learn more about how to value an urgent care, schedule a free consultation below!
