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Evaluating Equipment Before Practice Purchase

By: Sabrina Morrow

Before purchasing a practice, you may want to ensure you actually get what you are paying for. A professional appraisal is recommended, delving into everything from financial and operational reports to tangible assets.

One of the largest tangible assets is probably the equipment in the practice, and the value of those assets to some extent depends on what you are willing to pay for used equipment.

Used equipment only has value to you if it's needed in your new practice. Is the equipment up-to-date and fully functional? Does it support the services you will be providing? If so, the equipment may be considered a positive asset with real value.

But if the practice you want to purchase has technology that is not compatible with your services or is out of date, then it might be considered a negative asset -- particularly if the equipment has little market value and could cost money to have it removed.

Here are three steps to consider when evaluating in-office equipment before completing a practice purchase:

Understand before initiating your practice search exactly what equipment you need in order to operate effectively in the practice.

  • Divide your list into "must-have" and "nice-to-have" equipment.
  • Get estimated costs for each item.

Consider hiring an equipment appraiser to conduct a full inventory of the available practice. Be sure the appraisal:

  • Indicates still useful equipment versus outdated items.
  • Assigns value to each piece of equipment.

Identify equipment you will keep versus items you will liquidate, and determine liquidation and replacement costs.

You should now be able to better factor into your purchase negotiations the potential costs for updating existing equipment to bring the practice up-to-date to fully meet your needs.

About the Author

Sabrina Morrow, MBA, Manager Pacific Northwest, Wells Fargo Practice Finance, has more than 18 years in business administration, banking, and building strong long lasting relationships with happy clients. Sabrina holds a master's degree in business administration and has extensive experience in small business finance, business and consumer lending and credit. Her passion is helping her clients, large or small succeed financially. Currently, Sabrina specializes in the small business healthcare lending segment with four verticals (Dental, Medical, Veterinary, and Optometry). When she is not helping clients startup or acquire a new practice, upgrade, renovate or expand an existing practice or prepare for a transition event, she is taking care of her 4 dogs, extended family and volunteering for some cause she is close to. Most of all she enjoys being a resource for her clients, family, friends and colleagues. Contact: Sabrina.Morrow@wellsfargo.com 844-800-0140

View all articles by Sabrina Morrow


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All financing is subject to credit approval.

All financing is subject to credit approval.

All financing is subject to credit approval.

All financing is subject to credit approval.

All financing is subject to credit approval.

All financing is subject to credit approval.

All financing is subject to credit approval.

All financing is subject to credit approval.

All financing is subject to credit approval.

All financing is subject to credit approval.