Request a Dental Practice Valuation
Request a Dental Practice Valuation
Before you buy an existing dental practice or sell one of your own, you will need to know how much the practice is actually worth, which means a thorough dental practice valuation. Although you might assume that one valuation is just as good as another, there are more factors that can determine the total sale price of the practice—and some brokers are more dedicated than others to doing their due diligence. If you pay more than you should for a practice or get less than you should for a practice you are selling, you could end up with a serious cashflow problem. Here at ADS Dental Transitions, our goal is to provide buyers and sellers with accurate dental practice valuations so that both parties walk away from the deal satisfied.
The ADS Dental Transitions Approach to Valuations
Every practice is different, which is why we begin every valuation with a consultation about your practice. We want our clinicians to feel completely comfortable with our specialists so that the sales or purchase process can be completely tailored to your preferences. We utilize a detailed and thorough valuation process in order to ensure nothing is overlooked that might benefit your sale or purchase.
There are three basic methods for valuing a practice, and each option has its own list of benefits and drawbacks. Before your practice is valued, our expert brokers will talk with you about which method is right for your practice.
Asset-based valuations take into account the net value of your practices’ land, building, potential rental space, dental equipment, furniture, and everything else categorized as a business asset. After calculating the current book values of your assets, factors such as condition and depreciation will be taken into account to estimate the total business value.
One drawback to using this method alone is that it does not include earnings and overall cash flow of a practice. Also, since many dentists lease properties or don’t own equipment outright, this valuation process isn’t right for everyone.
Market Comparison Valuation
Markets fluctuate every day all over the world, and the dental practice market is no different. Practices can be worth much more or much less than estimated based completely off of comparable sales in the area. Market comparison valuations take those factors into account to evaluate what your business would actually sell for in today’s market. Ratios are used that measure recent sales relative to practice, annual revenues, net profits, and discretionary cash flow to determine accurate sales prices. Unfortunately, this method doesn’t take into account non-tangible assets that make your practice special.
One of the “golden methods” used to value dental practices is income-based valuation, which gives prospective buyers a fairly accurate idea of how much business they can expect each year. On average, dental practices sell for between 46% and 84% of their annual billings, which gives brokers a starting point for your valuation.
Here at ADS Transitions, we pride ourselves on our accurate valuations. In fact, the practices that we represent typically sell for 95% of their value, which means that you can count on getting top-dollar for the business that you worked so hard to grow. By working with us to value your practice, you can expect to receive:
- A fair, accurate market valuation for your business
- Access to our vast network of buyers
- Our dedicated team completely focused on your satisfactions
- Adjusted financial statements
- Historical financial statements
- A detailed practice analysis
ADS Transitions possesses a level of experience that is hard to find. We have worked with over 38,000 dentists to date and have handled over $2.8 billion in practice sales. Our experience makes us well prepared to handle the valuation of any dental practice, including the one that you love.
How much is my practice worth?
We are here to help!
There you have it—the process of receiving a valuation for your dental practice explained. ADS Transitions is well equipped to provide accurate valuations for dental practices regardless of whether you’re buying or selling. We’re prepared to assist you throughout the entire transition process to make it as easy and painless as possible. If you’re looking to receive a dental practice valuation, or have any questions for us, please contact us now; we’re here to help you!