Practice Valuations

Many dentists are unsure of the current market value of their practice. Purchasing or selling a practice is a huge decision. It is therefore critical that the most qualified valuation experts are brought in for these valuations. Dental CPA employs sophisticated valuation methods to provide you with the most comprehensive, accurate assessment of the fair market value of the dental practice you would like to purchase, or the current dental practice wish to sell.

Why Valuations are Important

  • When Purchasing
  • Determine Fair Market Value
  • Value & Liability Assessment
  • Risk Assessment
  • Avoid Costly Mistakes
  • Practice Production
  • Overall Health of the Practice

  • When Selling
  • Learn How to Increase Practice Value
  • Preparation for Your Practice for Transition
  • Ensure You Receive Maximum Value
  • Determine Retirement/Exit Strategy
“We look after your practice’s financial health, giving you more time to concentrate on client care and practice growth”
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Hand pointing to iPad chart: Importance of accurate dental practice valuations

Practice Appraisals

Appraisals involve examining key practice information to help determine the market value. Some of these key pieces of information include:
  • Gross & Net income
  • Fee Schedule
  • Staff Information
  • Insurance Accepted
  • Payment Types Accepted
  • Active Patient Database
  • Number of New Patients Monthly
  • In-House Specialties/Procedures
  • Patient & Area Demographics
  • Market Issues
  • Practice Culture & Goodwill

  • Why Might You Need a Formal/Written Valuation?
  • Bank Financing
  • Partnerships/Mergers
  • Estate Planning
  • Litigation
  • Understanding Your Practice Value
  • Peace of Mind
  • Retirement Planning

Beware of “Rule of Thumb” Practice Evaluations

Some practice consultant offering a free appraisal or valuation will use a Rule of Thumb method, which uses limited information and can result in a much less substantive value. Typical rule of thumb verbiage might be:
  • The practice is worth 70% of gross revenue
  • The practice is worth one times net income.
Rule of Thumb valuations do not usually factor in technology, overhead, client base, and other highly pertinent information to determine full value.

  • Formal Dental
    Practice Valuation
  • Complex Process Requiring High-Level Expertise
  • Comprehensive/Formal Written Report
  • Includes Supporting Data & Documentation
  • Includes Detailed Financial Analyses
  • Detailed Summarization

  • Situations Often Requiring
    a Formal Valuation
  • Buying/Selling a Business
  • Shareholder Reporting
  • Bank Loans
  • Co-Owner Disputes
  • Marital Divorce
Do you need help with practice valuations?
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