These valuation calculators are simply lead generators for brokers and DSOs. While a dental practice valuation calculators may seem convenient, they often rely on broad rules of thumb that fail to account for some of the most important factors that impact real market value. The collections, payor mix, and number of operatories matter, but they are only part of the story. A true dental practice valuation should consider location, buyer demand, local competition, procedure mix, hygiene production, active patient count, new patient flow, equipment and technology value, facility condition, lease terms, payor mix, growth opportunities, and much more.
To put it into perspective, you could have an “average” practice but if it is located in an area with premier market demand how could an online calculator take that into consideration? What if you understate your cash flow and you leave $50,000 of profit on the table? This could result in $100,000 to $200,000 in valuation that is lost.
We don’t do free practice evaluations like some of these other groups and brokers because they are doing a 30-minute (or less) assessment of your business to try and get you invested. To do a proper assessment of your practice and its value, it will likely take ~10 hours of time. We can say with confidence that other brokers don’t have the same level of experience or knowledge nor are they investing the proper amount of time to do it the right way. If you want to ensure you are getting top dollar and utilizing a broker who does more sales and practice evaluations in Florida than anyone else, we are here to help. We let our reputation, testimonials, and results speak for themselves.
Selling your dental practice may be the most important financial decision of your retirement plan. The right valuation and transition strategy can be the difference between maximizing your life’s work and leaving hundreds of thousands of dollars behind.
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