R A Valuation Services Ltd
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The Valuation Process / Frequently Asked Questions
The Valuation Process (how a private medical practice is valued)
Requirements are the latest (ideally three years of) accounts together with completion of a simple questionnaire. The valuation involves working from numerous recognised accounting methods based around business performance and return on investment. In addition, each surgery business is benchmarked using sector-specific guides to derive a figure that is fair and realistic in the open market. Many other features are also taken into account such as - if applicable - the value of fixtures fittings and equipment, the business location(s), presentation, patient profile, local trading conditions, competition and so on. RA requests photographs of the premises (again, if applicable). There is no need for a costly and instrusive site visit.

Uniquely, a substantial database of earlier business valuations developed by R A Valuation Services Limited over recent years enables each new valuation to be bench-marked against earlier results, ensuring that market trends are observed and greater accuracy achieved. Comparable data is up-to-date and highly relevant. In fact, the databases are enhanced by ongoing market research follow-ups which check goodwill assessments against sale prices achieved (where applicable). For any specialism that is new to RA, extensive research is undertaken on a per instruction basis, ensuring information is apposite.
The Valuation Process


Frequently Asked Questions
Q What is R A Valuation Services Ltd?
A long established company that specialises solely in business valuation .... more >>
Q What makes a private surgeon's business (more) valuable?
Although a recent set of trading accounts showing healthy profits .... more >>
Q My accountant advises I need a valuation of my business for incorporation purposes. Is this something RA does?
RA is highly experienced at valuing businesses for this purpose .... more >>
Q Can RA provide a value a business for divorce proceedings?
RA's reports have been used in law courts on both a joint and single joint expert instruction basis .... more >>
Q Can RA just give me a "ball-park" figure?
Unfortunately, there is no such thing .... more >>
Q What if my practice has several outlets or locations?
Many of RA's instructions are for multiple site businesses .... more >>
Q What do I get with my valuation?
A report that is detailed and informative .... more >>
Q What information do I need to provide?
Don't worry, the questionnaire explains everything .... more >>
Q How long does the valuation process take?
Typically within a working week .... more >>



Q What is R A Valuation Services Ltd?
A R A Valuation Services Ltd is a well established UK registered company that specialises solely in business valuation (with no interest in obtaining further instructions to sell a business or provide financial or other services). As purely valuation specialists, all valuations are genuinely impartial and independent. When R A Valuation Services Ltd was established in 1991, the focus was on the optical and goldsmith sectors. Subsequently, healthcare organisations, retail and professional services have followed. As a result of requests from businesses and professional bodies, along with new resources and consultants, RA has been able to further extend and broaden the types of businesses assessed.
Q What makes a business (more) valuable?
A Although the financials will often speak for themselves in terms of how a business is performing (and will continue to perform), there are a number of other factors that are examined in RA's assessment. These include external influences such as the economic climate at large; market conditions within the business sector; location - demographics and competition (local and wider); regulation, red tape and the threat of litigation. And internal influences (aside from financial) such as presentation; permanence of location; potential. These influences are covered further in our articles (click here). Essentially, though, there's nothing more influential than a recent set of trading accounts showing healthy profits.
Q My accountant advises I need a valuation of my business as I am considering incorporation / have recently incorporated. Is this something RA does?
A Frequently. Your new limited company can buy the goodwill of the existing business, and this has beneficial tax implications. Although there can never be a guarantee of HMRC's acceptance, an independent assessment (i.e. not one by the business's own accountant) will be looked upon favourably by HMRC. RA, with its knowledge of HMRC's operation, is highly experienced at valuing businesses for this purpose. RA will happily discuss any details with you and/or your accountant.
Q Can RA provide a value a business for divorce proceedings?
A Yes. RA's reports have been used in law courts on both a joint and single joint expert instruction basis, for expert appraisal purposes in matrimonial and other litigation settlements. RA will happily discuss any details with you and/or your solicitor.
Q Can RA just give me a "ball-park" figure?
A There is no such thing. Each valuation performed has an individual assessment and a detailed analysis of recent trading accounts and other data relating to the practice, its staff (if applicable), its location, its patients, local market conditions and so on. Any other approach would be unacceptable to bank managers, lawyers and accountants. Not only that, it could result in a disadvantageous tax implication - or, in the event of change of ownership, failing to achieve the full and fair market value.
Q What if my practice has several outlets or locations?
A Many of RA's instructions are for multiple site businesses. In these cases you must let us know if you need one valuation for the whole business or a separate valuation for each site as an indpendent business. In the latter case, separate trading accounts will be needed for each site. Please contact RA for costs of multi-site business valuations.
Q What do I get with my valuation?
A The results of our valuation process in a professionally presented electronic PDF report. The report itself is detailed and informative. It gives details of the scope of business activities, staff, premises, catchment demographics and competition, financial information and fixtures, fittings and equipment. Please note that RA Valuation Services values the business (goodwill) and does not value land or property.
Q What information do I need to provide?
A Accounts for the last three years together with completion of a simple questionnaire about the business and, if appropriate, an internal and an external photograph ... But don't worry, the questionnaire explains everything and is very straightforward to complete.
Q How long does the valuation process take?
A Typically within a working week* from receipt of the completed questionnaire(s), accounts and photographs. *Dependent upon current instructions - please confirm with RA at the time of instruction

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