What Is My Dental Practice Worth?
Quickly estimate your dental practice value using industry-standard methods. This guide provides simple formulas and a framework for understanding what buyers will pay.
Quick Valuation Methods
Method 1: Revenue Multiple
Formula: Annual Collections × Revenue Multiple
Multiples:
- Struggling: 50-60%
- Average: 65-80%
- Strong: 80-100%
- Excellent: 100%+
Method 2: EBITDA Multiple
Formula: EBITDA × Multiple
Multiples:
- General: 2.5x - 4.0x
- Specialty: 3.0x - 5.0x
- DSO sale: 4.0x - 6.0x
Method 3: Rule of Thumb
Quick estimate based on collections:
- Under $500K: 60-70%
- $500K-$1M: 70-85%
- $1M-$2M: 75-90%
- Over $2M: 80-100%+
Value Adjustments
Factors that increase or decrease value:
Value Increasers (+10-30%)
- Revenue growing 5%+ annually
- Modern technology
- 1,500+ active patients
- Fee-for-service heavy
- Transferable operations
Value Decreasers (-10-30%)
- Declining revenue
- Outdated equipment
- Fewer than 800 active patients
- Heavy Medicaid dependence
- Owner-dependent practice
Get Accurate Valuation
Quick estimates help with planning, but professional valuation is essential for selling:
- Professional appraisal: $2,500-$5,000
- Broker valuation: Often free
- Required for SBA financing
- Supports asking price
Conclusion
Use these quick methods for initial planning, but get professional valuation before making major decisions or listing your practice.
Free Professional Valuation
DentalBridge offers complimentary practice valuations using current market data and professional methodologies.