Purchasing established PT practice

[Guest guest]

Dear Group,

I know there are alot PT's who have owned, bought, and sold PT practices who

are among this group. Some simple information would be appreciated. I

graduated with a good friend who is now is Southern Idaho. He called me

asking for advice for which I wasn't very helpful. His boss/owner has

offered to sell him his established clinic for 5x Net. The owner would also

like to keep ownership of the clinic and lease the PT clinic/building to the

new owner.

The questions I couldn't answer for Dan include:

Is 5 times Net a fair price considering that it doesn't include the building?

Is 5x Net a fair price if the clinic was included?

I know there are many additional factors that must be considered in addtion

to what he has told me about the offer, but I thought 3x Net was a base to

start with. Am I right?

Any information suggestions, or advice would be greatly appreciated.

Dirk Baird DPT

Coeur d'Alene, Idaho