Dental Practice Valuation

Whether you’re a dentist or client who wishes to have the dental practice evaluated, you will have to look for a professional. There are certain approaches that should be used and factors to be considered.

Using the right approach or method, the reliable results can be obtained which can be of great value to the dental practice.

Dental Practice Valuation Approaches

Are you in the dental practice? If you are, then you’re probably too concerned about dental practice valuation. According to experts, valuation is no longer regarded as a science but it is now viewed as a form of art. There are certain formulas being followed, some numbers, and other relevant factors. The result will have a great effect on the profession. Valuation is often needed due to different reasons which include termination of dental practice, sale, merger, estate planning, divorce, and associate buy-in. The approaches used in dental practice valuation vary and so it would be best to look in these methods individually.

Two major approaches are often used and this includes the market value and gross revenue multiplier. There is a great difference between the two but as the practitioner, you can choose among these options before the actual valuation. Other methods used as asset summation and capitalization of earnings. Now, aside from these methods, you also have to consider some factors that can affect the valuation like employment, population in the area, demographics, and payment methods used.

Seeking Professional Help

As a dental practitioner, you also have to consider the real estate that is involved in your practice, the practice gross/net, practice growth, revenue history, sale timing, and associates (if any). Only a professional appraiser will be able to conduct an unbiased practice valuation. It would be best to get an experienced professional so that you can get a valid and reliable result. Even dentists can find out how well they are serving their target market. You can do this through the assets approach and the ‘rule of thumb’. Competent professional assistance is what you need if you want to determine if you’re meeting the needs of your clients or if you still need considerable improvement.

It’s not easy to provide dental service. This is a serious profession that entails great responsibility. If you want to make sure that your target market is satisfied with your performance, you have to seek the help of a professional. Clients who wish to have their personal dentists to be appraised can also utilize the services of the professional. With the right approach or methods, a valid result can be obtained in the fastest possible time. There is no need to rush the dental practice valuation because the results might be affected negatively. Take your time in evaluating the dental practice and consider the factors mentioned above. By doing so, you can get reliable results from professionals.


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