How does the algorithm work?

The VetBiz algorithm can be used to calculate the present and potential Goodwill of your veterinary practice using our latest software

We use the maintainable profit as the standard to undertake the value of the goodwill.

  • It is the most accepted method for producing a goodwill valuation of a veterinary practice.
  • It represents the earnings before interest & taxes, and any benefits the owner(s) and families take from the practice
  • It also excludes certain costs that are the responsibility of the present owner
  • For it to produce an accurate figure, these costs and benefits are replaced if needed by a market rate
  • Effectively it calculates the actual profit of the practice using market rate variable costs for employees etc and excludes costs associated with the current owner e.g. debts, interest etc.
  • The final Goodwill figure is adjusted utilising some non-financial information that represents the practice.