How Dental Practices Are Valued
- Author
- A Practice Orbit Podcast
- Published
- Thu 11 Jul 2024
- Episode Link
- https://the-dental-practice-sale.captivate.fm
Do you need to solicit a formal valuation for your practice? Or can you leverage other resources to get a general idea of its appropriate list price?
On this episode of the Dental Practice Sale podcast, host Wes Read explains why the profit and loss statement is the primary document for determining the value of a practice.
Wes walks us through the anatomy of a P&L and describes how to calculate the true cashflow profit of a dental practice as well as its approximate list price.
Listen in for insight on using Practice Orbit’s price estimator tool and learn what to do if your practice is worth more than a bank is willing to lend.
Topics Covered
The success of the launch of our Practice Orbit dental practice marketplace
How Practice Orbit serves as the MLS for dental practices
What makes Practice Orbit a technology company rather than a broker
How Practice Orbit is leveraging agile development to improve over time
When you need to get a formal valuation for your practice (and when you don’t)
Why the P&L is the primary document for determining the value of a practice
Wes’ insight into the anatomy of a P&L for a dental practice
Operating income + add-backs = true cashflow profit of a practice
How Practice Orbit’s pricing tool estimates the value of a dental practice
How the cashflow of a dental practice translates to list price
What to do if your practice is worth more than a bank is willing to lend
How DSOs determine the value of a practice differently than private sales
Connect with Wes Read
Email [email protected]
Resources
