ChiroWrite OCA’S CLINICAL NOTES SOFTWARE DOCUMENTATION MADE FAST & EASY Thinking of Retiring? Continued from Page 18 that the net profi t will increase by a mini- mum of 3.0 per cent per year for the next fi ve years. Compounding the 3.0 per cent per annum, by the end of year five the net profi t will be $167,390 and using the same 0.550 discount rate, the prac- tice will have a value of $304,345. You think this is what the buyer should pay. With the earn-out method, the buyer agrees to the basic price of $272,727. If, in fact, the net profi t increases at an aver- age rate of 3.0 per cent per annum for the next fi ve years, and in year fi ve it does net $167,390, he/she will pay the addi- tional $31,618 to the selling chiroprac- tor, and the deal is done. Up to a pre- determined cap, all increased net profit amounts above the base (here $150,000 per annum) would be prorated on the same basis. Experience The Difference For Yourself • • • • • • • • • • • Interfaces with the OCA’s Patient Management Program Complies with record keeping guidelines Most medical questionnaires and forms that chiropractors use are included ChiroWrite has the ability to produce a comprehensive list of reports World’s first chiropractic reporting system designed for touchscreen monitors and Tablet PCs Program features: Easy to use interface Copy prior visit information Customize exam and SOAP screens Customizable buttons that input predefined information Link to and include images Customizable report templates Contact us at 416-860-4163 or email [email protected]. Visit us at the Alberta College and Association of Chiropractors convention November 7 & 8, Banff, Alberta Other calculation methods could in- clude a certain amount per annum based on the businesses’ profi t threshold, an agreement based on gross revenue rather that after tax profi t, a higher discount rate if earnings are lower than anticipated, a cumulative earn-out based on annual profi ts during the entire contract period, and so forth. Because they hold an increased poten- tial for confl ict, earn-out transactions re- quire precise drafting and conductance. The rules must be clear and easy to carry out. It is ultra important that the method for calculating future earnings is spelled out. It is not good enough to say they will be computed according the GAAP Rules (Generally Accepted Accounting Prin- ciples). Be specifi c! Employ the best of lawyers and accountants to set it up – not the cheapest, the best. THE LAST WORDS Ontario Chiropractic Association. Treatment That Stands Up. It cannot be said too often: phasing out, or transitioning, from an active chiropractic practice must be a planned exercise. It can never be a case of saying that on an ap- pointed day, with a wad of money in your jeans, you will depart. An exit whereby you have your health, your wealth, and, yes, your reputation, intact will take meticulous planning and methodical execution. Start now: not “someday”, when, for some unex- pected reason, you must get out. Consider all your options, select the one that works best for you, get the best of legal and tax advice – and do it. • 38 • CANADIAN CHIROPRACTOR | OCTOBER 2009 www.canadianchiropractor.ca
Chiropractic + Naturopathic Doctor October 2009: Page 38
