Dental Practice Goodwill: What It Is and How to Protect It

Goodwill is the biggest piece of most dental practice valuations. But not all goodwill transfers to a buyer. Here is what actually makes goodwill valuable, and what destroys it.

Personal vs Enterprise Goodwill

Personal goodwill is tied to you: your reputation, relationships, and clinical skills. It walks out the door when you leave. Enterprise goodwill is tied to the practice: location, brand, systems, staff, and patient base. This is what buyers pay for.

How to Build Transferable Goodwill

• Reduce owner-dependence (associate production over 30%)
• Build systems that work without you
• Maintain strong staff retention
• Diversify referral sources