What’s Your Dental Practice Really Worth?
Thinking about selling your dental practice?
One of the first questions that probably comes to mind is: What is it actually worth? The answer depends on more than just the numbers — it depends on what you do before you sell.
The good news: there are clear, actionable steps you can take now to enhance your practice’s value and attract more serious, best-fit, higher-paying buyers.
Here are three ways to start:
1. Clean Up Your Financial Reports
Potential buyers rely heavily on your financial documents—think profit and loss statements, tax returns, and balance sheets. If your reports contain inconsistent categories or unclear entries, it raises red flags. On the other hand, well-organized, consistent financials build trust and boost buyer confidence. It’s never too late to clean up your accounting—it could pay off big time.
2. Evaluate Your Key Performance Indicators (KPIs)
Strong KPIs tell buyers your practice is healthy and has room to grow. Review your key financial and operational metrics—such as staff costs, supply and lab expenses, new patient numbers, case acceptance rates, and patient retention. If something looks off, chances are it can be fixed faster than you think. Tuning up your KPIs not only increases value but also shows your practice is well-managed.
3. Get a Professional Practice Evaluation
Just like you’d check your vital signs at an annual physical, regularly evaluating your practice gives you essential insights. An inexpensive practice evaluation by our company, Practice Endeavors, can help you identify areas for improvement. Then you and your financial advisor can plan more strategically to maximize future after-tax annual income. It’s a simple step that can give you greater clarity and peace of mind.
Ready to Take the Next Step?
Implementing these strategies now can significantly increase your practice’s value and ease the transition when it’s time to sell. To help you get started, we’re offering a free Practice Valuation Checklist. Or, if you’d rather talk it through, schedule a confidential call with one of our experts today.
Request Your Free Checklist or Schedule a Confidential Call
Start preparing today, and set your dental practice up for a more profitable future.
Take control of your future
PVA℠ helps practice owners prepare for the inevitable transition of their practices to new ownership.
J. Robert “Bob” Brooks, CEPA, CBI
J. Robert “Bob” Brooks, CEPA, CBI, leads Practice Endeavors, an Ohio-based practice brokerage and dental realty company. His company provides practice owners with the tools they need to prepare well for life after practice ownership and to find the best price/best fit buyers for their seller clients. Bob was integral in starting the first of its kind dental practice broker credentialing for the International Business Brokers Association.