project virtuoso

As a business owner, you know more about your business than any one, but there is one thing you are not too sure about – how much it is worth. This is the first in a series of articles designed to help you learn about business valuation and, if you choose, do your own business valuation.Defining ValueBefore we begin discussing business valuation it is important to define what value is. When asked, most people will struggle to define it then end up using an example like a one dollar bill is worth more than a quarter. Value is difficult to define without comparing at least two items. The comparisons must be well defined to have any meaning. For example a rare quarter may be worth more than a common dollar bill. The first step in any valuation is to accurately and completely define the property that is being valued.Value is also subjective. Someone who needs a quarter to plug a parking meter in order to avoid a parking ticket would gladly pay a dollar or more for a quarter. Similarly, one business may have a number of values. A strategic buyer that can plug the customers of the business into its existing system may perceive more value than a person who is going to run the business day-to-day. The second step in valuation is defining for whom the property is being valued. What is a Business Valuation? A business valuation is simply an estimate of what a business is worth based its hypothetical sale. It may also be called a business appraisal and has some similarities with real estate appraisals. A big difference is that much of business value is in the form of intangible assets, or goodwill. Valuing intangible assets involves a process of using various accepted valuation approaches and methods. The goal is to determine a value that can be explained and justified to others.How Much is a Business Worth? In theory a business is worth the present value of all the future benefits of owning the business. Present value is the process of discounting the value of cash or other property to be received in the future to its current value. There are many benefits (cash and non-cash) to owning a business. Valuation focuses on the financial benefits defined as earnings or cash flow. The rate at which the future benefits are discounted must account for all the risks associated with owning and operating the business. Basically the value of a business comes down to the classic investment paradox – risk vs. return. Basic Valuation MethodsThere are 3 primary approaches to valuing a business – market, income and asset. The market approach uses data from actual sales of similar businesses or from publicly traded companies to value a business. The market approach is the preferred method. The biggest problem is that good quality, comparable data is seldom available. The income approach looks at the earnings or cash flow of a business as the primary driver of its value. It is the most commonly used method and works well unless a business has little or no earnings. The asset approach tries to value each part (asset) of the business separately. The sum of the parts is the value of the business. This method works well with tangible assets, but not for the intangible ones. The methods of identifying and valuing individual intangible assets are highly theoretical and often produce unrealistic results. The asset approach is often used when a business has few intangible assets, or little or no earnings.ConclusionKnowing how much your business is worth is a critical piece of information that every business owner should know. The remaining parts of this series will explore and explain the business valuation process so you can do your own business valuation.

With the popularity of computers and the ability for them to sort through information within a short time frame it is no surprise that this system would be applied to the medical files and information. Health records have been around for many years and it wasn’t until recently that they have become computerized. There are many benefits of electronic health records that make finding information easily accessible for medical professionals as well as the medical staff to help patients in their treatment. An electronic health record includes an array of information that includes the past medical history of the patient and can be used to transfer important files to providers from the convenience of their computer. Such information includes demographic data, medical history, medications, allergies, immunization status, laboratory test results, other tests results, radiology imaging and billing information.

Not only do the benefits of electronic health record help with the process of patient care. It helps also ensure that everyone helping the patient is on the same page, so there is less room for confusion. This type of electronic system also helps increase the care provided by the physician as well as cuts expenses and promotes generalization of care. Another benefit of using electronic medical records is that it saves space. The office will no longer have to be filled with filing cabinets full of patients’ paper records. Since it doesn’t take very long for the patients care giver to place new information onto the patients electronic record, it also saves employees time. The reduction in use of paper is also a money saver. Not only do doctor’s offices and hospitals save space and use much less paper, the insurance companies also reap the benefits of electronic medical records. Because the doctor’s office can send records immediately to the insurance company, any claims are handled in a much quicker way. Because some patients may have multiple medical problems that cause them to see several different types of physicians the electronic system allows each doctor to keep track of what is happening in the patients all around treatment process.