¿Cómo tasar mi Clínica Dental?

Delyser Abogados , Telephone: 915410147 – E-mail: delyser@delyser.com

Current situation in Spain:

During the last years, the dental sector has suffered a disproportionate increase in our country. Currently there are, approximately, some 38.000 collegiate dentists and more than 24.000 registered dental clinics, what supposes a big increase with regard to previous years.

With these figures, Spain has an excessively high number of dentists in relation to its number of inhabitants, since the World Health Organization (WHO) recommends the existence of 1 dentist for each 3.500 inhabitants and those figures are far exceeded in our country, that says, approximately, with 1 dentist for each 1.200 citizens.

In this stage, although private clinics continue to represent a large percentage majority in Spain, it is worth noting the constant increase in franchises and insurers in the dental sector.

On the other hand, and as a favorable fact for dental clinic holders, it should be noted the fact that seven out of ten Spanish adults have visited the dentist in the last year ... as we see, an important career opportunity.

In this stage, the sale of dental clinics is going to be a common situation in the coming years and at any moment we can be tempted, either by the option of buying or by selling; thus, we must do a fundamental management exercise: VALUE HOW MUCH OUR CLINIC IS WORTH.

• Why should we make an assessment?

Knowing how much your business is worth is essential, of course if it is going to sell, but regardless of that it is a basic data for daily and investment management and decision-making, even if you have no intention of selling it.

• When should the assessment be made??

In connection with the previous answer, we should do an assessment every year, at the end of the exercise. This data will allow us to check the evolution of the clinic, if there is an increase in its value and if the managerial decisions that have been adopted have been adequate.

• What do we have to value?

In this section you have to be very objective and at the beginning you have to exclusively look for the true value of the clinic; a value to which later, in case of sale, certain evaluations related to vision or possibilities the clinic may be increased, trajectory, competitive advantages, etc.… factors, these that will determine the sale price, in your case.

We still need to explain:

• ¿How to value a dental clinic?

Dental clinics, even if they have certain specialties, must be valued, like any other business, they all have their little specialties and they are all marked by their own circumstances, but all of them are subject to assessment.

There are various models in the valuation market, for example, through discounting cash flows, that allows estimating the clinic's ability to generate benefits over the next few years. Another is to take into account EBITDA (activity income, before interest, taxes and amortizations) and multiply it by a fixed number, (approximate number of years to recover the investment); This method usually generates discussions due to the difficulty of choosing this coefficient..

Personally, for my experience in this sector, I think the best method would approximate what they call “valuation by elements”. It is very detailed and complex but provides more real data. In this method, an inventory is made of the assets and elements existing in the clinic and they are valued, not for their outstanding value, but for the "value of its replacement" at market prices. The costs of other rights such as administrative licenses are also incorporated., plays, etc.. and subtract existing debts. From that value, other elements such as the “quality of patient files”; and, is that it is useless to say that a clinic has a certain value for having 5.000 patient files if you have had minimal or non-existent movement in the last two years. The type of treatments carried out and their profitability may also be taken into account..

As we see an arduous but very revealing work that will help us to know the value of our clinic.

So that, as conclusions, we can establish that it is necessary to make this assessment and that it would be convenient to do it annually, if we want to give our healthcare professionalism a professionalism in management.

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