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JOURNAL OF INTERDISCIPLINARY RESEARCH
3.2 Determining the value of market rentals for intangible
assets
As already stated, the market value of the rental for intangible
assets was determined taking into account the adjusted profit
achieved in each period. Due to the fact that the gynecological
clinic has a relatively short history of its operation, one value of
the adjusted profit was set as the arithmetic mean of the adjusted
profits achieved in 2013, 2014 and 2015. The results of the 2011
and 2012 financial years were negatively affected by the
beginning practice and were therefore not calculated.
Corrected earnings were determined for operating income and
expenses. An important element for determining the adjusted
earnings is implied implicit investment intensity. For the purpose
of determining this quantity, a market survey was carried out in
order to determine the usual purchase price of the office
equipment and passenger cars, taking into account the usual life
of the individual components.
Tab. 4. Imputed investment intensity
Asset item
Amount of
investment
Life expectancy
in years
Investment
demand / month
Ultrasound Philips HD7 L
CORE
790,000 CZK
15
4,389 CZK
Colposcope BTL –KAPS
model KP 3000
125,000 CZK
20
521 CZK
Examination bed
25,000 CZK
20
104 CZK
Examination gynecological
chair GRACIE
255,000 CZK
20
1,063 CZK
Surgery furniture
50,000 CZK
20
208 CZK
Passenger vehicle Subaru
LEGACY
800,000 CZK
15
4,444 CZK
Passenger vehicle Subaru
OUTBACK
1,100,000 CZK
15
6,111 CZK
TOTAL
3,095,000 CZK
16,840 CZK
Imputed investment cost of the
ambulance per calendar year
202,083 CZK
Source: Authors
The figures in Table 4 do not imply the necessary investments in
the gynecological clinic, but it is a calculation of the real
expected cash flow.
Another, no less important item of the adjusted earnings
calculation is the opportunity costs that will be considered at the
rate corresponding to the usual wage of the doctor. With regard
to the office hours of the existing ambulance, the wages of the
doctor will be reduced by the ratio of 24/40. For the calculation
of the adjusted profit, the average monthly salary of a doctor in
private health care facilities of 58,153 CZK (IHIS, 2013) which
was increased by the employer's statutory payments for
employees (health insurance and social security contributions).
Total annual cost of opportunity is 561,060 CZK (calculation
procedure: (58,153 * 12 * 1.34) * 24/40).
Corrected earnings for individual years were calculated, with
operational revenues and expenditures from the relevant calendar
year (overview included in the appendix), imputed investment
cost and opportunity costs being considered for the same period
for all periods.
For the next calculation, the average adjusted earnings for 2013-
2015, i.e. 587,317 CZK, were used.
The annual rent from intangible assets (RN
nehm
) corresponds to
the alternative cost of equity, respectively. the rate of reasonable
profit from the average corrected profit:
ℎ
=(0.5%+1.26∗8.53761665690777%)∗587,317
(8)
ℎ
≅66,120
Monthly rental from intangible assets (MN
nehm
) then corresponds
to one twelfth of RN
nehm
.
ℎ
=
66,120
12
(9)
ℎ
=5,510
3.3 Overall recapitulation
The total recapitulation of the valuation and, subsequently, the
rental rates are given in Table 5.
Tab. 5. Table 5 Recapitulation of results
Item
Amount
Annual rent for tangible assets
270,720 CZK incl. VAT
Annual rent for intangible assets
66,120 CZK incl. VAT
Annual rental total after rounding up 336,840 CZK incl. VAT
Monthly rent for tangible assets
22,560 CZK incl. VAT
Monthly rent for intangible assets
5,510 CZK incl. VAT
Monthly rental total after rounding up 28,070 CZK incl. VAT
Source: Authors
The value of the market rent of a private gynecological clinic is
determined with respect to the current material and technical
background, to 28,070 CZK including value added tax. The
value was determined with the assumption that the lessee will
bear the costs of securing the normal operation of individual
items of tangible property.
4 Conclusion
The aim of the paper was to determine the value of market rent
and to assess differences in the valuation of a healthcare
company.
The goal of the paper was met.
The monthly rent was determined on the basis of the valuation of
the tangible and intangible assets of a person doing business
under a non-trade license in the amount of 28,070 CZK. The
value of goodwill is 5,510 CZK per month.
The greatest benefit of the paper can without doubt be
considered the methodology of leading the valuation of
intangible assets, namely goodwill. The methodology is
applicable as standard for any medical device. The advantage is
the possibility to standardize the process and not only to
appreciate this asset component, but also the possibility to
compare individual healthcare facilities (and probably regardless
of their specialization). On the other hand, we need to realize
that the value of goodwill was set at 31 December 2015. It is
thus a question of whether the value of goodwill will remain the
same for an indefinite period of time or will change over time.
The question is whether it will grow or the value will fall. At the
same time, it is necessary to say whether the future value of
goodwill will always be based on its present value. However,
this is the topic for any further follow-up.
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