Dental Practice Valuations and Appraisals
Henry Schein Dental Practice Transitions provides dentists with accurate valuations, optimizing practices across the country and maximizing their value.
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A dental practice valuation is a full assessment of what a practice is worth, based on its financial performance, clinical production, patient base, staffing, equipment, facility, payor mix and local market. It reviews several valuation methods together, including income, asset and market approaches, rather than applying a single percentage to collections.
Dentists have practices valued for a sale, an associate buy-in, a merger, a partnership, a financing application, a letter of instruction covering death or disability, or to set an asking price ahead of a planned sale. A valuation also identifies where practice value is being lost, in areas such as overhead, fee schedules, hygiene recare, unscheduled treatment and staff productivity, which gives an owner time to act before going to market. Henry Schein Dental Practice Transitions has completed about 2,000 dental practice valuations in the last five years.
It’s often said that a dental practice valuation is a mysterious mix of science and art. Yet we here at Henry Schein Dental Practice Transitions, a subsidiary of Henry Schein, Inc., have cracked the code. With the top transition specialists around, we’ve performed thousands of valuations for practices all over the country, working with dental professionals in major cities, suburbs, small towns and rural communities.
Because we’re the best, we know all there is to know about dental practice valuations, including the secrets. Read on to learn about these and how Henry Schein Dental Practice Transitions has mastered the mystery of the valuation process, making it the ideal partner for your practice.
What Is the Difference Between a Dental Practice Appraisal and a Valuation?
Determining the value of a practice involves many factors, and the ultimate evaluation is only taken seriously if it’s accurate. A quick shot appraisal can be easy but it’s just that—a ballpark estimate. The difference between an appraisal and a thorough valuation comes down to the depth of analysis and the authority behind the work.
When a dental practice valuation is prepared by Henry Schein Dental Practice Transitions’ team—the most experienced transitions specialists in the dental profession—you know you’re getting a realistic assessment, one that’s useful and not just what you want to hear. Through a combination of data, market value insights, and industry ingenuity, we deliver a comprehensive report that helps you sell your practice, optimizing the amount you earn in the process.
Already convinced on knowing the full value of your dental practice? Our transition specialists are ready to help with a confidential consultation.
When Do You Need a Dental Practice Valuation?
A dental practice valuation gives you a detailed, up-to-date picture of what your practice is worth in the current market. But thinking about selling isn’t the only reason to know your practice’s value. Here are other circumstances Henry Schein Dental Practice Transitions specialists have created valuations for:
- Practice Sales and Acquisitions
- Associate Buy-ins
- Mergers
- Partnerships / Multi-Doctor Ownership
- Financing Applications
- Letters of instruction in case of death or disability
- Setting an asking price for when you’re ready for the big sale
What a Valuation Finds That Can Increase Practice Value
Whether you’re approaching retirement or thinking of bringing on a partner, and whether you have a single practice or multiple locations, our experienced dental practice transition specialists will help you maximize the value of your practice prior to listing it on the market.
A Henry Schein Dental Practice Transitions valuation comes with actionable insights made to increase your practice’s business value. Our experts identify potential pain points, which may include:
- Overhead Expenses and Profitability
- Fee Updates
- Staff Productivity
- Hygiene Recare
- Exams
- Radiography Use
- Unscheduled Treatments
- Specialty Procedures
- Broken Appointments
- Facility and Equipment Needs
Whether you’re ready to sell your practice or just beginning to investigate your transition options, contact us today!
An experienced consultant at Henry Schein Dental Practice Transitions will get back to you.
Who Prepares a Henry Schein Dental Practice Transitions Valuation
Henry Schein Dental Practice Transitions valuations are prepared by Transition Consultants who work only on dental practice transitions. DPT is part of Henry Schein, Inc. and has guided dental practice transitions since 1993. In the last five years, it has completed about 2,000 practice valuations and 1,000 practice sales, and it maintains a network of more than 40 consultants working in their own regional markets and more than 36,000 registered purchasers.
Because consultants work in the markets they cover, a valuation reflects local buyer demand, lending conditions and comparable sales rather than national averages alone.
Frequently Asked Questions
What are dental practice valuations and why are they necessary?
- Short Answer: Dental practice valuations are comprehensive assessments used to determine the transactional market value of a dental practice based on its financial performance, clinical production, and market position.
- Detailed Guidance: A professional valuation is the foundation of any successful transition, whether you are selling your practice, considering a partnership, or planning for an emergency exit. For owners, achieving "valuation clarity" helps in understanding the practice's true worth beyond simple annual collections, ensuring long-term financial security and legacy goals can be met.
How does a professional dental practice appraisal differ from a simple revenue estimate?
- Short Answer: A professional valuation involves a rigorous analysis of "true operating value," including practice financials, production and annual collections, fixed assets (equipment), operations (including staffing) and market conditions. True valuations should review multiple methodologies including the income, asset and market approaches and may also include a review of EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) multiples.
- Detailed Guidance: While many brokers use basic percentages of collections, Henry Schein Dental Practice Transitions delivers a premium service that looks beyond the surface, digging in to the important and vital details that truly make a difference. The result is not just a point-in-time number that conveys value, but can further identify hidden growth opportunities and communicate market potential. Our dental practice appraisal process leverages industry-leading and unmatched data resources and trend tracking to evaluate financial efficiency, clinical productivity, hygiene-to-doctor production ratios, systems and marketing efficacy, patient flow, procedure and payor mix, reproducibility and geographic demand.
What factors influence dental practice valuations?
- Short Answer: Key factors include historical financial performance (earnings/SDE), the condition of dental equipment, local competition, patient recall rates, and the stability of the staff.
- Detailed Guidance: Beyond the balance sheet, a dental practice appraisal considers the "goodwill" and reputation of the practitioner and practice within the community. Factors such as the transition lifecycle—whether a dentist is a mid-to-late career owner or an early-stage dentist seeking clarity—can also play a role in how the practice is positioned for a future sale or merger. Beyond that, financial stablity (collections and overhead), location and facility make-up, staff tenure, patient base, insurance/payor mix, age of equipment, historical sales in addition to the overall marketplace all play important roles in evaluation.
How often should a dentist seek a dental practice appraisal?
- Short Answer: It is recommended to obtain a professional valuation and update it every year, but at least every 2–3 years or as part of a 12–24 month preparation process before a planned sale to ensure the business is optimized for the market.
- Detailed Guidance: Engaging early in the transition lifecycle allows owners to address technical or operational friction points that could lower your practice's value. As the largest and most resource connected dental practice transitions firm in the U.S., Henry Schein Dental Practice Transitions helps owners use these valuations as a roadmap to increase profitability and strengthen practice operations before reaching out to potential buyers.
Why choose Henry Schein Dental Practice Transitions for dental practice valuations?
- Short Answer: Henry Schein Dental Practice Transitions works only on dental practice transitions and has guided dentists through them since 1993. In the last five years it has completed about 2,000 practice valuations and 1,000 practice sales, with more than 40 Transition Consultants working in their own regional markets and more than 36,000 registered purchasers.
- Detailed Guidance: No other transitions company in the country offers the depth of accessible resources and data, network of local, regional and national representation and expertise and overall valuation and transactional history that comes from working with Henry Schein Dental Practice Transitions. While some will boast of longer reports or shorter turn-around time, a Henry Schein Dental Practice Transitions valuation lives in the “sweet spot” of comprehensive analysis, concise, relatable and understandable reporting, and minimal active review and development time. With a team specifically trained to digest and interpret the wide ranging data collected, you can rest assured that the end result is reflective of an industry leading product.
How much does a dental practice valuation cost?
Cost depends on the size and complexity of the practice and on the purpose of the valuation, since one prepared for a sale covers different ground than one prepared for a partnership, a buy-in or a financing application. DPT offers a complimentary consultation to talk through what a specific practice would need before any work begins.
How long does a dental practice valuation take?
Turnaround depends on how quickly financial records, production reports and practice information can be gathered. Owners who have the last three years of financial statements, production and collections reports, an accounts receivable summary, an equipment list and current lease terms ready shorten the process considerably.
What do I need to provide for a dental practice valuation?
Most valuations start from three years of financial statements and tax returns, production and collections reports, an active patient count and recare figures, a staffing list with tenure and compensation, an equipment inventory, and the practice lease or property details.
