Asset Values: What Not to Overlook in a Medical Practice Valuation

April 29, 2016

 

 

 

I came across this picture of a typewriter on Facebook the other day.  It had the following caption:

 

Does anyone else have this in their law firm or place of business?  This is ridiculous.  And my parents won't let me donate it or throw it away.  #oldschool

 

I laughed because these old typewriters are in a lot of the medical practices I value. I also laughed because I would never dream of leaving a typewriter like this out of a fixed asset appraisal.   

 

To the multi-million dollar health system buying a medical practice, this typewriter isn't a crucial asset.  However to Dr. Bob or Dr. Susan who started the practice 25 or 30 years ago, it is a symbol of hard work.  Including it in the fixed asset list, and giving it a proper appraisal, shows in a small way that the buyer appreciates the sweat equity that built the practice.  Not to mention - these things still get used quite a bit. 

 

I was pleased to read through the comments on the Facebook post and see that someone else had already schooled the poster with this:

 

That's not just a typewriter.  That's an IBM Selectric.  That machine is how work got done - every office in America had them or wanted them.  Fantastic machine.  Probably worth $200, depending on condition.  A good secretary could do 75 words per minute on it.  You won't need it often, but when you do, nothing else will do.

 

Exactly!

 

See our asset appraisal page at www.buckheadfmv.com

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