How Much Is My Dental Practice Worth? A Dentist's Guide to Valuation
Most dentists underestimate or overestimate what their practice is worth. This guide breaks down the three main valuation methods with real numbers, so you walk into negotiations armed with data.
Method 1: Percentage of Collections
The most common rule of thumb. General practices typically sell for 60-80% of annual collections. Specialty practices may command higher multiples.
Method 2: SDE Multiple
Seller Discretionary Earnings (SDE) is your net income plus owner benefits. Practices typically sell for 1.5-2.5x SDE.
Method 3: EBITDA Multiple
Used primarily for larger practices and DSO acquisitions. Multiples range from 4-8x EBITDA depending on size and growth.