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An Interview with Dr. David Edward Marcinko; MBA, CMP™
[By Karen Caffarini: Reporter: American Medical News]
Hot Topic
Medical Practice Appraisals and Valuations
[Unedited Question-Answer Interview]
Excerpt
“The allocated purchase price must be reported to the IRS. Goodwill is considered a capital asset. Therefore, the seller will want to allocate as much of the selling price to goodwill as possible. The buyer will want to allocate more of the selling price to non-goodwill assets because goodwill amortization is not tax deductible while depreciation and amortization of other assets is tax deductible. This “negotiated” goodwill will stand as the IRS value.“
Assessment
Thus, the IRS has effectively forced the controversial goodwill determination on practice buyers and sellers. This makes it even more imperative for buyers to specifically identify any hidden practice assets they are acquiring at the time of purchase; or for purchasers to discover them.
Humor
Q: What asset might have less value than a toxic credit-debt-obligation [CDO]?
A: A private medical practice
Conclusion
Your comments are appreciated; especially if you have bought, sold or merged a medical practice recently.
Read it here: ama-news-reply
Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com
OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:
LEXICONS: http://www.springerpub.com/Search/marcinko
PHYSICIANS: www.MedicalBusinessAdvisors.com
PRACTICES: www.BusinessofMedicalPractice.com
HOSPITALS: http://www.crcpress.com/product/isbn/9781466558731
CLINICS: http://www.crcpress.com/product/isbn/9781439879900
ADVISORS: www.CertifiedMedicalPlanner.org
BLOG: www.MedicalExecutivePost.com
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Filed under: Career Development, Interviews, Op-Editorials, Practice Management, Research & Development | Tagged: appraisals, valuations | 3 Comments »
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