Pandemic and Practice Values

Mariana Bracic, B.A. (Hons), J.D. – Founding Lawyer, MBC Legal
Jon Walton, B.Sc., C.C.O.V.I.  – General Manager and Sales Representative, MBC Brokerage

When it comes to practice values, we are hearing from many doctors that they are confused and worried. Our advice to you during these times is to keep calm, and use this time to your advantage to prepare. 

While no one has a crystal ball, we anticipate an increase in listings in the medium term. We have tabulated the results of the poll (see below if you haven't yet responded; we still want to hear from you!) from our last three e-lerts. Here are the results to date: 

·      73.3% of you responded you will sell sooner because of COVID!

·      10% of you responded you will sell later because of COVID; and

·      16.7% of you responded your plans for transition are unchanged. 

At MBC Brokerage, we are working with the major Schedule I banks to account for the COVID-19 anomaly to mitigate major losses in practice value attributable to this past, highly irregular, year in practice revenue. It is reasonable to expect an adjustment in these circumstances because all medical and dental practices are generally in the same situation. It is not as if your patients were going elsewhere for treatment, they simply were not allowed to come in to see you, and they need(ed) to return when the lockdown lifted. It is not lost revenue, but merely deferred revenue.

So, when it comes to worrying about what the pandemic may have done to your practice value, keep calm and carry on. And if you can use this time advantageously to put your affairs in good order (such as by getting or updating your professional practice appraisal) even better. To discuss your practice value in this unusual time, contact us.