Demystifying Business Valuation: Jennifer Cohen's Advice for Healthcare Practice Owners

This week, Stephanie Rodin chats with her guest, Jennifer Cohen. The two chat about the journey to partnership in the financial advisory industry, the essential steps and challenges involved in valuing healthcare practices, and the distinction between business and personal goodwill.  In this episode, we discuss: How valuation professionals analyze a medical or healthcare practice as a cash‑generating business, focusing on patient revenue, margins, systems, and fair market value rather than just simple "rules of thumb." What distinguishes business goodwill from personal goodwill in a medical practice, including how a physician's own reputation and patient relationships can materially affect value. Why timing matters and why sellers should ideally start working with valuation advisors four to six months before a contemplated sale, even if a specific buyer has not yet been identified. What distinguishes business goodwill from personal goodwill in a medical practice, including how a physician's own reputation and patient relationships can materially affect value. Why the fair market value (hypothetical buyer and seller) differs from synergistic value tied to a specific buyer, and how this shift affects negotiations with hospitals, PE groups, or junior partners.   Jennifer Cohen is a Partner in the firm's Valuation Advisory Services Practice and has nearly 15 years of experience preparing business valuations for healthcare organizations, privately held companies, family limited partnerships, real estate holding partnerships, stock options, intangible assets such as royalty assets, patents and trademarks and other income generating assets in broad industries including healthcare, service, manufacturing, and wholesale distribution industries.   Jennifer prepares valuations for a variety of purposes, including financial reporting, estate and tax planning, matrimonial and shareholder disputes, transactional and other litigious purposes. Her extensive experience includes: Value privately held companies, family limited partnerships, real estate holding partnerships, stock options, intangible assets such as royalty assets, patents and trademarks and other income-generating assets in a broad variety of industries including restaurants and hospitality, technology, healthcare, cannabis, and other service, manufacturing, and wholesale distribution industries. Prepare business valuations for a variety of purposes including financial reporting, estate and tax planning, matrimonial and shareholder disputes and other litigious purposes. Prepare engagements in accordance with FASB ASC topics ASC 805 (business combinations), ASC 718 (equity-based compensation) and ASC 820 (fair value measurements) and IRS 409a compliance. Review externally prepared valuations by third party specialists as part of the fair value audit review process. EDUCATION & LICENSES Bachelor of Arts degree in Business Administration, Muhlenberg College, Chartered Financial Analyst (CFA) Candidate of the American Society of Appraisers  Social Media Links:  https://www.linkedin.com/in/jennifer-cohen-40935425/

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