Why should I get my dental practice professionally valued?
Jamie Savage, Director – Valuation Services at Christie & Co, explains what a RICS valuation is, why you might need one, and what you can do to get the best value for your dental practice.
What is a RICS valuation and why might I need one?
A RICS business valuation establishes the market value of your business in the hands
of a reasonably efficient operator (REO).
An opinion of market value fulfilled by an RICS registered valuer is also the only recognised opinion that a lending institution would consider for loan security.
A valuation can be needed for a range of things, including:
- Advice on property values, land purchase, tenure issues and related legislation
- For secured lending (mortgages), partnership, management and development decisions
- Advice on issues relating to ESG (environmental, social and governance)
- Advice on suitable rent for properties that are to be tenanted
- Negotiating business rates, acquisitions and disposals
- Advice on ways to maximise property investments and provide property risk-related advice
- Create documents for mortgage valuations, tenancy contracts and other legal matters
- Expert witness for court purposes – death, divorce or disturbance
What can I do to my practice to get the best valuation?
If you’re looking to make changes to your practice to improve its valuation outcome, here are some things to consider:
- If you want to sell imminently, spending money on small tweaks and furnishings won’t necessarily translate into value. Many buyers will want to put their mark on the decor/furnishings when they take over, so this may be a wasted expense
- Keep a close eye on costs – are you getting the best prices suppliers can offer? Have a clear plan to show how you are tackling any rising costs such as heating, lighting, and wage costs
- Get your team on board for upselling/cross-referral opportunities where possible
- Use your hygienists/therapists to their maximum potential
- Keep your accounts and management information as up to date as possible. This will help to see the current performance, particularly with the new SDR changes, rather than previous years’ potentially distorted levels due to Covid subsidy/multiplier payments
For a confidential chat about your business valuation, contact Jamie Savage.
E: jamie.savage@christie.com
T: +44 7840 022 116