1. What’s the value of a dental practice? The value of a properly appraised practice is a function of two factors: Risk and Net Income. The greater the risk to success in a practice, the lower the interest from buyers. Higher risk translates to lower practice value. Valuing a practice involves the review of three… read more »
Archive for the ‘Appraisals’ Category
How to appraise a dental practice
Wednesday, April 1st, 2009I am often asked, “How do you appraise a dental practice?” and “What percent do you use to get the price?” If the process were that simple, we wouldn’t need experts in practice appraisal, just a calculator that can multiply two numbers. Professional appraisers approach the task of every appraisal with the same principles. In… read more »
Practice appraisal — the foundation of a successful transition
Friday, January 2nd, 2009Dental literature often quotes this formula — The value of a dental practice is 60% to 70% of annual collections. Why, then, should dentists pay to have comprehensive, professionally done appraisals of their practices? No dentist I know would pay a half million dollars for a home built on a foundation of sand. They know… read more »
Determining the value of a practice
Tuesday, May 6th, 2008Various methods of appraisal have been used through the years. Some of the methods have fallen out of favor, and more sophisticated appraisal methods have evolved. To establish the most accurate value possible, a combination of methods is recommended. Securing an earnings stream is the primary motivation for a dentist to purchase a dental practice…. read more »