If you are a physician owner or healthcare business professional looking for an appraisal, you might be wondering how to find the best healthcare valuations professional to serve your needs.
The answer to this question may appear straightforward, but it can turn out to be more complex than you initially anticipated. By focusing on the principles of how to hire a healthcare valuator, the process can be made much smoother.
Start with Services
The first step is to determine what type of appraiser you need. The answer is based on what you are looking to have appraised. Is it a business entity, real estate, equipment, services or something else?
You also must determine the primary focus of the valuation. For example, a business valuation determines the value of a healthcare practice beyond the considered worth of the equipment and real estate. An equipment appraisal may be for a sale or for a lease agreement. The lease agreement may be for a specific asset or a block lease of a group of assets. A block lease might also include employees, space, supplies and other overhead.
Knowing what services you are looking for makes it easier to search for a healthcare valuations professional who specializes in your specific needs. Keep in mind that you might have to talk to someone to assist you in determining what type of valuator services would best suit your needs.
Factor in Professional Designations
When you select a healthcare valuation professional, be aware that most will have at least one professional designation that they’ve earned. The table below lists some of the most common ones, what they stand for and the organization that grants them.
|CBA||Certified Business Appraiser||Institute of Business Appraisers|
|ASA||Accredited Senior Appraiser||American Society of Appraisers|
|CPA/ABV||Certified Public Accountant Accredited in Business Valuation||American Institute of Certified Public Accountants|
|CVA||Certified Valuation Analyst||National Association of Certified Valuation Analysts|
|CFA||Chartered Financial Analyst||CFA Institute|
Factor in Cost
There are different levels of service offered by healthcare valuators. The price for an appraisal can range from about $8,000 to $35,000 or more. Odds are, your needs will put you somewhere in the middle. In order to get an accurate estimate of what the appraisal will cost, you need to discuss things with your advisors beforehand and determine what level of report you need. Ask yourself if you can get by with just the minimum report, or if you should invest the funds to get a more thorough report done.
Oral appraisals are significantly less expensive than written reports. You need to check and see if you need to have the full written report or if an oral report will suffice. This will impact the amount of time the valuator needs to spend on the valuation, which will affect the overall cost.
When it comes to oral appraisals, there is an hourly charge. In most cases, it will take approximately two to four hours to conduct the background work necessary to reach an oral appraisal amount. An additional one to two hours is required to explain the result to the client. When considering an oral appraisal, you can estimate a cost based on three to six hours of work performed.
Written appraisals will cost significantly more because they typically take an appraiser 20 to 50 hours to complete. The length of the written report also varies significantly, anywhere from around 15 pages to over 100 pages.
If you need a healthcare valuation for legal purposes or require an appraiser to testify, then preparation is involved, resulting in higher costs.
Since appraisal work can vary significantly, it’s important to shop around for estimates for your needs from multiple potential valuators so that you know that you are getting the best deal possible. Doing your research is one of the most important principles when it comes to hiring a healthcare valuation professional.
Do Your Research
It’s extremely important to do your research before starting the process of hiring a healthcare appraiser. Use websites like HealthcareValuators.com to find articles about the topic, as well as background information about valuators in the field. Make sure you know what costs may be in involved with your valuation.
Our healthcare valuators directory provides a way to learn more about the different services healthcare valuator professionals provide, and also shows you the valuators in your area that might be able to assist you. Remember that you should also talk with potential valuators to make sure that you are hiring someone who is a good fit for your needs. Interview multiple potential healthcare valuations professionals and be sure to ask them not only about their credentials and experience, but also about what they charge for their services. If you have questions about the process, you can also ask an expert, such as Blayne Rush, for recommendations.
When you ultimately decide to hire a healthcare valuator, make sure that that they are someone who you can trust. You want an experienced professional who is capable of handling your situation, acting in a timely manner and providing an understandable, independent valuation that you can use for your business.