There are many factors that can affect the acquisition price of a private dermatology practice, including the size of the practice, its location, the quality of its facilities and equipment, the reputation and experience of the staff, and the financial performance of the practice. Other factors that may impact the acquisition price of a private dermatology practice include the demand for dermatology services in the area, the competition from other practices, and the efficiency of billing practices.
In general, a private dermatology practice that has a lower accounts receivables churn ("AR churn"), has a significant percentage of repeat customers, and is located in a geographic area that indicates an evergreen target market is likely to command a higher acquisition price than a newer practice or one that is less efficient in its billing and collections practices.
It's important to note that the acquisition price of a private dermatology practice can vary widely and may be influenced by a variety of other factors, such as the negotiating skills of the parties involved and the terms of the deal. A professional business valuations firm or business broker can help you determine the fair market and the investing value of a private dermatology practice and assist with the acquisition process. A seller may be able to obtain greater than fair market value for a practice if the business broker is able to locate a buyer who is willing to pay more for the strategic value of the business.
