Discover Your Dental Practice's Actual Value With the Practice Transition Calculator
Why a Professional Practice Valuation Helps You Make Smarter Decisions
Getting a comprehensive valuation from Professional Transition Strategies gives you a clear, accurate snapshot of your practices worth so you can see all your options. Even if you’re not ready to transition, having the numbers now is smart business. It lets you plan strategically, make informed decisions and more fast when the right opportunity comes along.
Your bespoke prospectus will outline your practice’s financial health, spotlight growth opportunities and set the stage for a successful transition, whether you’re considering selling to an individual buyer, affiliating with a Dental Support Organization (DSO), expanding your footprint or bringing on a partner.
Key Takeaways:
- 62% higher value on average with professional appraisal vs. 0.8x revenue rule
- 27 out of 46 practices were undervalued by $1M+ using simple multiples
- Professional valuations consider profitability, growth potential, and market conditions
Why a Professional Practice Valuation Helps You Make Smarter Decisions
Getting a comprehensive valuation from Professional Transition Strategies gives you a clear, accurate snapshot of your practices worth so you can see all your options. Even if you’re not ready to transition, having the numbers now is smart business. It lets you plan strategically, make informed decisions and more fast when the right opportunity comes along.
Your bespoke prospectus will outline your practice’s financial health, spotlight growth opportunities and set the stage for a successful transition, whether you’re considering selling to an individual buyer, affiliating with a Dental Support Organization (DSO), expanding your footprint or bringing on a partner.
Key Metrics for Dental Practice Valuation: SDE vs. EBITDA
- Individual buyers: Typically pay 70-80% of annual collections
- DSO acquisitions: Use 8-12x EBITDA multiples
- Your buyer type choice significantly impacts the final valuation
All About Seller’s Discretionary Earnings (SDE)
Our in-house CPA shares the ins and out of SDE and how it impacts your practice transition.
Navigating Dental Practice Valuation: Common Questions for Valuation Specialists
Our valuation experts breakdown a few more common questions when docs are exploring a practice transition
Complete Roadmap to Understanding Dental Practice Valuations
We present our guide to dental practice valuation.
What EBITDA and SDE Mean for the Sale of Your Dental Practice
We break down the difference between EBITDA and SDE and what they mean for the sale of your dental practice.
Key Metrics for Dental Practice Valuation: SDE vs. EBITDA
What is SDE?
- Stands for seller’s discretionary earnings, representing your true take-home pay
- Includes salary, net income, tax treatment items and personal expenses run through the practice
- Most often used by individual buyers who need bank financing, and helps lenders assess affordability of a dental practice purchase
What is EBITDA?
- Measures a dental practice’s current operating profitability
- Shows the return on investment when someone else performs the dentistry
- Commonly used by DSOs and private equity groups for transaction models like joint ventures, sub-DSOs, equity rolls and direct PE investments
All About Seller’s Discretionary Earnings (SDE)
Our in-house CPA shares the ins and out of SDE and how it impacts your practice transition.
Navigating Dental Practice Valuation: Common Questions for Valuation Specialists
Our valuation experts breakdown a few more common questions when docs are exploring a practice transition
Complete Roadmap to Understanding Dental Practice Valuations
We present our guide to dental practice valuation.
What EBITDA and SDE Mean for the Sale of Your Dental Practice
We break down the difference between EBITDA and SDE and what they mean for the sale of your dental practice.
FAQ: How Different Factors Impact Your Dental Practice Valuation?
How does owning vs. leasing my office affect valuation?
Owning gives you the option to sell the property with your practice for a larger upfront payout or lease it to the buyer for long-term income. The right choice depends on your financial goals and willingness to manage the property post-sale.
Our real estate experts are here to advise you every step of the way.
Do insurance models impact practice value?
Yes. Fee-for-Service (FFS) practices typically earn the highest valuations due to predictable revenue. PPO practices remain attractive – especially when your reimbursement rates are optimized.
Medicaid participation can lower valuation due to lower rates and added complexity. But, at the end of the day, well-run practices still attract buyers.
How can I improve my insurance mix before a sale?
Consider working with seasoned dental practice brokers to understand how your current insurance mix influences your practice’s value by having a formal prospectus of your business performed.
Then, work with experts to explore ways to renegotiate your reimbursement rates, and determine if dropping low-performing plans is advantageous to increase your profitability
Does equipment affect valuation?
Should I invest in new equipment before selling?
Not necessarily. Upgrades only add value if they improve buyer interest or operational efficiency. An experienced dental practice broker will be able to assess your current equipment and advise on if you should make upgrades.
How does debt affect my practice’s value?
How to Increase Your Practice Value ASAP
1. Streamline Operations
Reduce inefficiencies and ensure all systems are well-documented.
2. Boost Your Online Presence
Encourage positive patient reviews to add credibility to your practice and attract new patients.
Maintain an informative, high-converting website that encourages new patients to move to your practice.
3. Secure Your Patient Base
Show consistent patient retention and growth to make your practice more attractive to buyers.
Know Where you Stand. Start With a Professional ValuationToday!
A professional dental practice valuation from the team at Professional Transition Strategies gives you the clarity and data you need to make informed decisions about your future. Whether you’re exploring a sale, partnership, or just want to better understand your financial position, our valuation process provides the insights to move forward with confidence.
Is Your Practice Ready to Sell? (And Are You?)
Selling a dental practice is one of the biggest decisions a practice owner can make – financially and personally. At Professional Transition Strategies, we understand that a successful transition isn’t just about numbers; it’s about timing, mindset and preparation.
Our Dental Exit Strategy Evaluator is designed to help you assess both the financial health of your practice and your emotional readiness to take the next step.