How to Value Dental Equipment
Dental equipment typically represents 10-20% of practice value. Accurate valuation requires understanding depreciation, condition, and market demand.
Valuation Methods
1. Replacement Cost Less Depreciation
- Current new equipment price
- Less accumulated depreciation
- Adjust for condition
2. Fair Market Value
- What willing buyer pays
- Based on comparable sales
- Considers demand and condition
3. Liquidation Value
- Auction or forced sale price
- Typically 20-40% of original cost
Depreciation Guidelines
| Equipment Type | Useful Life | Annual Depreciation |
|---|---|---|
| Chair and units | 10-15 years | 7-10% |
| X-ray equipment | 7-10 years | 10-14% |
| Digital scanners | 5-7 years | 14-20% |
| Computers/software | 3-5 years | 20-33% |
| Handpieces | 5-7 years | 14-20% |
Condition Adjustments
- Excellent: 80-90% of depreciated value
- Good: 60-80% of depreciated value
- Fair: 40-60% of depreciated value
- Poor: 20-40% or salvage only
High-Value Items
- CBCT systems ($80K-$150K new)
- CAD/CAM systems ($100K+ new)
- Panoramic X-ray ($40K-$100K new)
- Dental chairs ($15K-$40K each)
Bottom Line
Equipment valuation requires depreciation knowledge and condition assessment. For major items, consider professional appraisal. For most practices, equipment represents secondary value to goodwill.
Equipment valuation help? Contact DentalBridge.