Goodwill value is almost always the most significant and valuable component of a dermatology practice’s worth. The Health Care Group’s Goodwill Registry reports actual transactions involving the intangible goodwill value of dermatology and other medical and dental practices.
The information below, drawn from the 2006 Goodwill Registry, continues to confirm that dermatology goodwill, though still trending downward, is still quite viable — although dermatology practice goodwill has fallen with the increasing shortage of dermatologists and the very high demand for dermatologists throughout the country.
Average Dermatology Goodwill Percent
The Goodwill Registry uses a “comparable sales” methodology to allow a practice to determine the worth of its goodwill. A practice’s goodwill value is presented as a percentage (Goodwill Percent) of the practice’s annual gross (cash receipts) revenue, and represents goodwill values for real-world transactions.
The average dermatology practice goodwill percent for the last 10 years has been 30.17% but this percentage has been trending downward. The average dermatology goodwill percent in the past 3 years of data, 2003 to 2005, is 21.74%. A number of explanations for the decline in goodwill being paid exist, including the following:
- The dermatologist shortage has caused a rise in dermatologists’ compensation.
- Dermatologists have participated in groups that bid up associates’ salaries.
- With group practices on the rise, more dermatologists are working part time.
- The combination of higher salaries and more part-timers results in more dermatologists electing to remain associates and not buy into their group, thus reducing the number of buyers for dermatology practices. When there are fewer buyers for practices, goodwill values fall.
About the Data
The Goodwill Registry for 2006 includes more than 4,000 reported transactions (more than 70 for dermatology practices) submitted to The Health Care Group by participating healthcare advisors, consultants, and practices from 1996 to 2005.
Data from the Goodwill Registry has been used in litigation proceedings to help resolve valuation issues. The complete 2006 Goodwill Registry also reports specific detailed data for each transaction including the reason for valuation, valuation method, gross revenue and overhead percent.
A new data analysis tool kit allows quick and easy analysis of the Goodwill Registry’s comparable sales data. For more information about this, contact Michael Parshall. n
Goodwill value is almost always the most significant and valuable component of a dermatology practice’s worth. The Health Care Group’s Goodwill Registry reports actual transactions involving the intangible goodwill value of dermatology and other medical and dental practices.
The information below, drawn from the 2006 Goodwill Registry, continues to confirm that dermatology goodwill, though still trending downward, is still quite viable — although dermatology practice goodwill has fallen with the increasing shortage of dermatologists and the very high demand for dermatologists throughout the country.
Average Dermatology Goodwill Percent
The Goodwill Registry uses a “comparable sales” methodology to allow a practice to determine the worth of its goodwill. A practice’s goodwill value is presented as a percentage (Goodwill Percent) of the practice’s annual gross (cash receipts) revenue, and represents goodwill values for real-world transactions.
The average dermatology practice goodwill percent for the last 10 years has been 30.17% but this percentage has been trending downward. The average dermatology goodwill percent in the past 3 years of data, 2003 to 2005, is 21.74%. A number of explanations for the decline in goodwill being paid exist, including the following:
- The dermatologist shortage has caused a rise in dermatologists’ compensation.
- Dermatologists have participated in groups that bid up associates’ salaries.
- With group practices on the rise, more dermatologists are working part time.
- The combination of higher salaries and more part-timers results in more dermatologists electing to remain associates and not buy into their group, thus reducing the number of buyers for dermatology practices. When there are fewer buyers for practices, goodwill values fall.
About the Data
The Goodwill Registry for 2006 includes more than 4,000 reported transactions (more than 70 for dermatology practices) submitted to The Health Care Group by participating healthcare advisors, consultants, and practices from 1996 to 2005.
Data from the Goodwill Registry has been used in litigation proceedings to help resolve valuation issues. The complete 2006 Goodwill Registry also reports specific detailed data for each transaction including the reason for valuation, valuation method, gross revenue and overhead percent.
A new data analysis tool kit allows quick and easy analysis of the Goodwill Registry’s comparable sales data. For more information about this, contact Michael Parshall. n
Goodwill value is almost always the most significant and valuable component of a dermatology practice’s worth. The Health Care Group’s Goodwill Registry reports actual transactions involving the intangible goodwill value of dermatology and other medical and dental practices.
The information below, drawn from the 2006 Goodwill Registry, continues to confirm that dermatology goodwill, though still trending downward, is still quite viable — although dermatology practice goodwill has fallen with the increasing shortage of dermatologists and the very high demand for dermatologists throughout the country.
Average Dermatology Goodwill Percent
The Goodwill Registry uses a “comparable sales” methodology to allow a practice to determine the worth of its goodwill. A practice’s goodwill value is presented as a percentage (Goodwill Percent) of the practice’s annual gross (cash receipts) revenue, and represents goodwill values for real-world transactions.
The average dermatology practice goodwill percent for the last 10 years has been 30.17% but this percentage has been trending downward. The average dermatology goodwill percent in the past 3 years of data, 2003 to 2005, is 21.74%. A number of explanations for the decline in goodwill being paid exist, including the following:
- The dermatologist shortage has caused a rise in dermatologists’ compensation.
- Dermatologists have participated in groups that bid up associates’ salaries.
- With group practices on the rise, more dermatologists are working part time.
- The combination of higher salaries and more part-timers results in more dermatologists electing to remain associates and not buy into their group, thus reducing the number of buyers for dermatology practices. When there are fewer buyers for practices, goodwill values fall.
About the Data
The Goodwill Registry for 2006 includes more than 4,000 reported transactions (more than 70 for dermatology practices) submitted to The Health Care Group by participating healthcare advisors, consultants, and practices from 1996 to 2005.
Data from the Goodwill Registry has been used in litigation proceedings to help resolve valuation issues. The complete 2006 Goodwill Registry also reports specific detailed data for each transaction including the reason for valuation, valuation method, gross revenue and overhead percent.
A new data analysis tool kit allows quick and easy analysis of the Goodwill Registry’s comparable sales data. For more information about this, contact Michael Parshall. n
