ii THE ADA PRACTICAL GUIDE TO VALUING A PRACTICE Authors Paul A. Baumann, CPA, ABV, CFF, ASA Paul A. Baumann is a nationally recognized expert in dental practice valuation and transition. He is currently a co-owner of Baumann Moreau, a Tampa-based firm that provides litigation and valuation services to many professions and industries, specializing in the medical and dental profession. He has over 20 years of experience in dental practice valuation, transition and management and has lectured throughout the world for the American Institute of Certified Public Accountants (AICPA), the American Society of Appraisers (ASA), the U.S. Internal Revenue Service (IRS), the Institute of Chartered Accountants in England and Wales (ICAEW), Tsinghua University in China, and various nationally recognized public accounting firms. Paul Baumann has provided expert witness testimony and litigation services support in numerous cases such as shareholder disputes, marital dissolution, and commercial damages. Baumann may be contacted at 813.830.6530 or paul@baumannmoreau.com or through the firm’s website, www.baumannmoreau.com. Staff contributions to this manuscript were made by Paul T. Swain, Jr., MBA, ASA. Randall Berning, JD, LLM Randall K. Berning, JD, LLM, president of Berning & Affiliates, is a healthcare attorney and nationally recognized as an expert consultant in dental practice transitions. For over 30 years, he has provided dentists and dental specialists with specific practice plans to implement vision, practice profitability, valuation and associateships, partnerships, and sales. He is past Adjunct Professor of Dental Jurisprudence and Director of Practice Administration at the University of Illinois at Chicago College of Dentistry and past adjunct faculty at University of California San Francisco School of Dentistry and the University of Maryland, Baltimore, College of Dental Surgery. He can be reached at 1.800.999.8121 or RKBerning@BerningAffiliates.com or through the firm’s website, www.BerningAffiliates.com. Staff contributions to this manuscript were made by Kathryn Pulkrabek, Manager/Editor, Professional Products, Department of Product Development and Sales and Carolyn Tatar, MBA, Senior Manager, Product Development and Management, Department of Product Development and Sales. The Council on Dental Practice and the American Dental Association wishes to acknowledge the contribution to this publication over the course of five previous revisions made by Larry R. Domer, MBA, DBA, AVA. Dr. Domer’s in- depth knowledge of the dental profession contributed to the publication’s success. He continues to be a nationally recognized expert in dental practice valuation and transition. He is currently Professor Emeritus at the University of Colorado School of Dentistry and is co-owner of Domer Valuation & Consulting, a Denver-based firm that provides valuation services exclusively to the dental profession. In addition to having Masters and Doctorate degrees in Business Administration, he holds the designation of Accredited Valuation Analyst from the National Association of Certified Valuation Analysts and is a member of the Institute of Business Appraisers. The Council on Dental Practice Mission Statement The mission of the Council on Dental Practice is to recommend policies and provide resources to empower our members to continue development of the dental practice, and to enhance their personal and professional lives for the betterment of the dental team and the patients they serve. This publication is designed for dentists to provide general background information in the process of selling or buying a practice. It is not intended or offered as accounting, legal or other professional advice. Readers must consult with their own professional advisors for such advice. We hope that the publication streamlines your consultation with your advisors. Copyright, American Dental Association, 2013, 2006, 2001, 1996, 1992. i d bli