Business Valuation Update
- How to Review a Report’s Valuation Methodology
- Ideas for Solving Two Problems in the BV Profession
- How Do Your Firm’s Benefits Stack Up?
- Using Rule of Thumb Data to Uncover Cooked Books
Physician goodwill varies by practice - part II
In the September issue of BVU, Kumura expressed a concern that the present value of the future tax savings inuring to the benefit of the buyer overstates the value of goodwill. However, sinc ...
2003 AICPA BV conference brings record attendance
The 2003 AICPA National Business Valuation Conference took place in Phoenix, Arizona at the JW Marriott Desert Ridge Resort & Spa. The conference started on November 16, 2003 and consist ...
2001 ASA International Appraisal Conference, part 2 of 2
The American Society of Appraisers annual multidisciplinary conference was held in Pittsburgh, Penn., July 23-25. The theme of the conference was "Build New Bridges into the Millennium," given that th ...
From experts in valuation in each of nine industry groups to a takeoff on Survivor, AICPA BV Conference offers variety
The 2001 AICPA Business Valuation Conference held at the Venetian in Las Vegas December 2-4 was attended by 840 people (by the way, the Venetian served the best conference food that I've ever experienced).
Dietrich Gives Insights Into Latest Issues in Healthcare Valuations
The newest member of the Business Valuation Update editorial advisory board is Mark O. Dietrich, CPA/ABV, who is, according to the American Health Lawyers Association, a renowned valuation thought leader in the area of healthcare. Of course, we agree with ...
Dietrich and Smith’s Debate Challenge Re: FMV of Physician Pay
Mark Dietrich and Tim Smith will debate anyone who disagrees with their views on the fair market value of physician compensation, views that refute conventional wisdom. BVR will provide a forum for the debate.
The 1999/2000 Medical Practice Valuation Guidebook: Including the Influence of Managed Care
In addition to raising the bar on medical practice valuation, Mark Dietrich has written a text on physician practice management that is really three books in one.
Valuations in consolidating industries
Understanding the Difference between Strategic Value and Fair Market Value in Consolidating Industries , Mark O. Dietrich, Business Valuation Review , June 2002, pp. 77-82. Valuator ...
A Lesson in Healthcare Supply and Demand—and Market Power, Part 2
This is Part 2 of a two-part article that follows up on the author’s landmark research on the fair market value of physician compensation. The issue of insurance market structure and the related impact on the negotiating of provider contracts was addressed in Part 1 of this article. Physician distribution and the impact of local payment rates that determine compensation is addressed in Part 2.
BV, CV, and the Relationship Between Fair Market Value and Commercial Reasonableness
The dual requirement that transactions subject to regulatory review are both at fair market value and commercially reasonable has gained increasing importance in both business and compensation valuations. There is much diversity in thought and practice ar ...
Debt Service Analysis Provides Reality Check in Medical Practice Valuations
Editor’s note: This article is excerpted from the BVR/AHLA Guide to Healthcare Valuation, 3rd ed. Reality checks are most important in valuation for transactional purposes and in those jurisdictions where fair market value is the standard for marital dis ...
A Lesson in Healthcare Supply and Demand—and Market Power, Part 1
This is a follow-up to the author’s landmark research on the fair market value of physician compensation. The issue of insurance market structure and the related impact on the negotiating of provider contracts is addressed in Part 1 of this article. Physician distribution and the impact of local payment rates that determine compensation is addressed in Part 2.
Kick-Starting a CPT Revenue Analysis for a Physician Practice
An example of how to get started on a Current Procedural Terminology (CPT) revenue analysis for an orthopaedic practice, including detailed background data on this type of practice.
Physician Distribution, Mobility, Fair Market Value, and Compensation Surveys
An analysis of regional differences in physician compensation coupled with the general tendency against long-distance relocation shows there is no national market for established physicians. Rather, local market conditions must be considered in setting fair market value.
CPT® Codes Drive Compensation, Business Valuation, and Regulatory Compliance in Healthcare
“Know them or practice at your peril,” says the author, who maintains that you cannot understand Stark Law requirements without understanding the CPT® codes for the particular medical specialty you are engaged to value.
Fair Market Value: A Complicated Standard
This article was triggered by a recent article by Jim Hitchner that maintained that it is a “myth” that fair market value assumes a financial buyer, without synergistic benefits. The author believes the answer to the question is more nuanced than the term “myth” suggests, which prompted him to revisit his thinking on the concept.
IRS Reasonable Compensation Job Aid: Healthcare Perspective
(Editor’s note: This is an excerpt from the author’s chapter, “Using Work RVUs and ‘Particular Market’ Rates to Establish Fair Market Value of Physician Compensation” (Chapter 15), in BVR’s Guide to Physician Practice Valuation, 3rd edition ...
Understanding the Science of COVID-19 Is Key to Assessing Valuation Impacts
For the economy to recover, the origin, transmission, and “hot spots” related to the coronavirus have to be understood. Much of the economy is highly localized, so the nightmare of the spreading virus will impact future cash flow of the smaller businesses most valuation experts work with. This is an excerpt from the new “BVR Briefing: The Real Story of COVID-19 for Valuation and Litigation Experts.”
Differences in Commercial Insurer Pay Rates Dominate Healthcare Valuation (Unless You’re Relying on Surveys)
Payment rates drive revenue and profit in the healthcare sector, and, therefore, without that knowledge, a valuation conclusion has only a random chance of being accurate.
Revisiting the Meaning of Fair Market Value
We all know the classic definitions of fair market value from Revenue Ruling 59-60 and the International Glossary, which I’ll repeat here for sake of clarity (see sidebar). At its core, fair market value (FMV) asks the appraiser to answer the question of ...
Tips for Valuing—and Designing—Buy-in and Buyout Agreements for Medical/Dental Practices
After hundreds of engagements, the author identifies a number of best practices for both the valuation analyst and the consultant with respect to buy-in/buyout arrangements.
Physician Distribution, Mobility, Fair Market Value, and Compensation Surveys: An Update
This article updates the author’s peer-reviewed research on the geographic distribution of physicians in the United States, including some key commentary from CMS about the use of surveys for Stark fair market value.
Valuation of an ACO Participant’s Equity Investment
Editor’s note: This article is excerpted from the BVR/AHLA Guide to Healthcare Valuation, 3rd ed., available in spring 2012. Accountable care organizations (ACOs) are intended to revamp the way Medicare pays for care. There are some very complex rules th ...
Factors in Forecasting Cashflow and Estimating Cost of Capital in Healthcare
It is critical when undertaking the valuation of any company to have a good understanding of the risks associated with the future cash flows. In the healthcare industry today it has never been more important or more difficult to appropriately assess risk ...
Individual’s attributes are critical for calculating personal goodwill
Distinguishing personal goodwill from enterprise goodwill can be a critical undertaking, especially for marital dissolution and allocation of purchase price for tax or financial reporting purposes.