What Is My Dental Practice Worth? Calculator Guide
Understanding your practice value is essential for planning. While online calculators provide estimates, professional valuation is critical for actual sale.
Valuation Methods
1. Multiple of Collections
Simplest method: Practice Value = Annual Collections × Multiple
| Practice Type | Typical Multiple |
|---|---|
| General dentistry | 0.65-0.80x collections |
| Ortho/Perio | 0.70-0.90x collections |
| Oral surgery | 0.75-0.95x collections |
| Endodontics | 0.70-0.85x collections |
| Pediatric | 0.75-0.90x collections |
2. Multiple of EBITDA
Value = EBITDA × Multiple (typically 3-6x)
3. Asset-Based Valuation
Equipment + Goodwill + Patient records
4. Comparable Sales
Recent sales of similar practices in your area
Value Calculation Factors
Increases Value
- Growing collections (3-year trend)
- High profit margins (>40%)
- Strong patient base (>1,500 active)
- Modern equipment
- Good location/visibility
- Trained, stable staff
Decreases Value
- Declining revenue
- High overhead (>70%)
- Small patient base
- Old equipment needing replacement
- Poor location
- High staff turnover
Quick Valuation Calculator
Step 1: Calculate 3-year average collections
Step 2: Apply appropriate multiple
Step 3: Adjust for key factors (+/- 10-20%)
Example
General practice, $800K collections, stable growth, good location:
- Base: $800K × 0.70 = $560,000
- Growth trend: +10%
- Estimated value: $616,000
Bottom Line
Calculators provide rough estimates. For actual sale planning, invest in professional valuation ($3,000-$8,000) that buyers will respect.
Need professional valuation? Contact DentalBridge.