{"id":264,"date":"2024-01-18T16:33:28","date_gmt":"2024-01-18T16:33:28","guid":{"rendered":"http:\/\/freedom.local:8888\/?p=264"},"modified":"2024-03-11T21:27:21","modified_gmt":"2024-03-11T21:27:21","slug":"dental-practice-worth-valuation","status":"publish","type":"post","link":"https:\/\/freedomdentalpartners.com\/2024\/01\/dental-practice-worth-valuation\/","title":{"rendered":"How Much is My Dental Practice Worth?"},"content":{"rendered":"\n
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Article Overview<\/h3>\n
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Getting the Most Out of Your Dental Practice<\/h5>\n <\/a>\n \n \n \n \n \n <\/g>\n<\/svg>\n
What is EBITDA?<\/h5>\n <\/a>\n \n \n \n \n \n <\/g>\n<\/svg>\n
Strategies for Increasing EBITDA<\/h5>\n <\/a>\n \n \n \n \n \n <\/g>\n<\/svg>\n
Common EBITDA Pitfalls<\/h5>\n <\/a>\n \n \n \n \n \n <\/g>\n<\/svg>\n
Your EBITDA is in Your Hands<\/h5>\n <\/a>\n <\/div>\n <\/div>\n\n

Getting the Most Out of Your Dental Practice Valuation<\/span><\/h2>\n

The sale of your dental practice is a once in a lifetime transaction that, when executed correctly, can be your ticket out of clinical dentistry and into a secure future. It\u2019s an asset you\u2019ve dedicated years of your life to build with the potential to fund your retirement or your next venture. It\u2019s not an exaggeration to say leveraging the sale of your practice is your path towards Total Dental Freedom\u2014clinical, financial, lifestyle.<\/span><\/p>\n

With so much riding on this single transaction, it\u2019s important to know your dental practice worth so that you can get the maximum out of the sweat equity you\u2019ve invested through the years.<\/span><\/p>\n

There are two primary ways dental practice valuations are conducted, and for the most part it depends on who the buyer is.<\/span><\/p>\n

20 years ago, selling to a dentist was the main way to offload a practice. Today, selling to a dentist is still an option, albeit less common than it once was. When selling to a dentist, the primary method of valuation is a simple formula: a percentage of annual collections. Typically this number ranges from 70-80%.<\/span><\/p>\n

This is the simplest of the dental practice valuation methods, although often the least lucrative.<\/span><\/p>\n

DSOs take a different approach. They will value a practice based on a multiple of EBITDA.<\/span><\/p>\n

The greater the EBITDA, the higher the multiple. We typically see these bands:<\/span><\/h3>\n