Whether you are planning to sell, thinking about buying, or simply want to know where you stand, understanding your practice’s value is one of the most important numbers in your financial picture. Answer a few questions about your collections, overhead, and practice profile — and our calculator will give you an estimated valuation range based on the multiples dental practices actually sell for.
Most dental practices are valued between 60% and 85% of trailing 12-month collections, or 2.5x-3.5x adjusted EBITDA.
DSOs typically pay 5x-7x adjusted EBITDA for dental practices with $1.5M+ in collections and clean financials, with a portion paid as illiquid DSO equity.
Goodwill typically accounts for 70-85% of a dental practice’s purchase price, with the remainder allocated to equipment, supplies, and patient records via IRS Form 8594.
An S-corp asset sale gives the seller long-term capital gains treatment on goodwill (currently 20% federal max) versus ordinary income rates on equipment recapture.
A defensible dental practice valuation takes 2-4 weeks with three years of cash-basis P&Ls, tax returns, and a current production report by provider.
We work tirelessly to save you more money and make your practice more profitable. But don’t just take our word for it! We proudly work with over 150 happy dentists, all with a 5-star rating. Check out our glowing reviews on Google.