“How much is my dental practice worth?”
“How much is my dental practice worth?” is by far the most common question we are asked. Dental and orthodontic practices typically sell for a percentage of collections based upon the last full fiscal year of collections. The typical rule of thumb is that a practice will sell for somewhere between 50% and 70% of collections although we have seen them sell for lower and for higher than that from time to time. Practices in desirable and more metropolitan areas will typically sell for closer to 60% and 70% of collections and sometimes even higher for very desirable locations. More rural practices will sell for closer to 50% of collections and sometimes lower. Age and condition of equipment, amount of Medicaid versus private pay and insurance pay, the amount of seller’s discretionary earnings and other variables may also influence these rules of thumb.
All furniture, fixtures, equipment and inventory are included in the purchase price. Accounts receivable typically are not included in that price but are often purchased for a discount on top of that. All cash is also kept by the seller. We work with several lenders that will loan on the purchase of dental or orthodontic practice and sometimes some owner financing is also done for qualified buyers.
We at the CBI+Team pride ourselves on getting our sellers the most money for their practice in the quickest amount of time. Each client we work with is treated with attentive and personal care in order to best assess their practice and then we develop a customized marketing plan to help them sell. We have multiple programs to help buyers attain money in order to purchase a practice and we have over 20 years of experience in helping people sell and buy practices. Call us today at 1-877-582-5200 for a free consultation and to get started.