Asset Values: What Not to Overlook in a Medical Practice Valuation
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.
See our asset appraisal page at www.buckheadfmv.com