In order to make an educated decision about your future as a dental practice owner, you need to have an accurate valuation of your practice. A good valuation establishes a benchmark for negotiations and helps you understand your transition options. Our free dental practice valuation is truly comprehensive and includes an analysis of your staff resources, location, equipment, fee structure, patient base, and cash flow. Once we complete the valuation, you will be provided with a reliable estimate on the fair market value of your practice, which you can use to make decisions regarding tax planning, retirement planning, and how to increase the value of your practice to potential buyers. If you are a few years out from selling or bringing on a partner, now is the perfect time to have our firm complete a valuation of your practice.
We pride ourselves on offering a much more extensive dental practice valuation than our competitors. With the experience of a tax attorney and accountant with over 20 years experience with dental practice valuations, our firm is uniquely qualified to value dental practices.
After completing our valuation request form, we will ask you to provide us with your practice’s tax returns and financial statements for the past three years. This allows us to provide you with the most accurate valuation possible.
Our process is simple, yet thorough and accurate.
- We collect your information, which includes things like tax returns and profit and loss statements.
- We input your data into our software. Your primary expenses, like wages, rent, and taxes, are compared to industry averages, and we review the information you provided to us in your practice profile.
- We adjust for your personal expenses and adjust primary expense categories to align closer to industry averages (what is referred to as normalizing).
- We analyze your data, completing a cash flow analysis and review of subject factors like equipment, location, and your urgency to sell.
- We schedule a call or visit to review your data with you and explain the anticipated fair market value of your practice and how we arrived at that number. Additionally, we offer other observations that might help you increase the sales price of your practice and make your business more desirable.
Our goal is to provide you with information that can help you make educated decisions about tax planning, retirement, and increasing the value of your practice.
When performing a valuation, we take one of three approaches.
- The Asset Approach assesses both a practice’s tangible and intangible assets.
- The Income Approach often uses a Single Period Capitalization Method to determine how much a potential buyer can afford to pay for a dental practice.
- The Market Approach uses sales information on similar practices to determine the market value of a practice.
Because of our extensive experience, we know that there is not a single approach that is best. Instead, we base our approach on the age, location, and collections of the practice, as well as your urgency to sell.
How We Help
Once we complete our valuation, we provide you with a cover sheet that outlines the estimated value of your practice, as well as other key details. Our aim is to give you information that will help with your tax and retirement planning, and that can guide you in a practice transition in the future. If you at some point decide to move forward with a sale, we are more than happy to assist you and provide you with the full analysis.
At Watson, Brown and Associates, we believe that time is valuable. We know that in order for us to perform a valuation, you will spend your time compiling financials for us to review. That’s why we do such an in-depth analysis–to make sure that you receive the absolute best value for your time. As a member of ADS, we have access to the nation’s largest database of practice sales data, allowing us to formulate appraisals that are incredibly accurate and ensuring that you see the value in our approach.
Your dental practice transition begins with a trustworthy appraisal that can help you maximize your practice’s value. Contact us today to discuss a free practice valuation by Watson, Brown and Associates.