A dental practice's value comes down to more than its equipment and square footage. Buyers and lenders generally look at collections, provider production, patient retention, new patient flow, overhead ratio, and the strength of the lease or real estate, alongside the local market and competition.
Most valuations use a multiple of adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) or a percentage of annual collections, depending on the size and type of practice. General practices commonly trade in a different range than specialty practices, and a practice with strong recurring hygiene and recall systems will typically value higher than one without.
Getting an accurate valuation before you list, or before you make an offer, helps set realistic expectations on both sides and avoids stalled negotiations later. We recommend working with a dental-specific valuation professional or CPA who can review your specific numbers rather than relying on rules of thumb alone.
If you'd like a referral to a valuation specialist, reach out through the contact page.