Valuating a dental practice is like solving a crossword puzzle — it requires knowledge in many areas. The purpose for the valuation should be clearly identified, and it usually falls in one of two categories: An ongoing-basis type of valuation, commonly used for the purpose of division of assets for a divorce. Market-value approach, used to identify the value of the practice prior to its sale. In... More »

Regardless of where you are in the selling process, you can never start too early. Consider the following 13 tips to improve your practice now. Get your fees in line. Fees should be evaluated and adjusted annually. Several resources are available to report treatment fees by percentile for a given zip code. Getting your fees in line can add practice value if instituted soon enough. Do a cash-flow analysis.... More »

My last article discussed the pitfalls of partnerships and buy-ins, which include loss of control, loss of marketability, and loss of value. These are consequences of converting a real tangible practice into intangible undivided interests. This article describes an alternative to buy-ins, providing the benefits of buy-ins without the risks and losses which buy-ins incur. Prior to considering any form... More »

Buyers are increasingly seeking help from practice brokers when buying a dental practice. Many of these prospective buyers are recent graduates who are paying back high student loans. They realize the importance of making the right choice, and seeking help from consultants who focus exclusively on dentistry and can analyze a purchasing opportunity rationally. What the buyer needs to do: Decide... More »

Having sold two of my own general dental practices and hundreds of practices for my clients over the past 18 years, I am always impressed with how well patients of a general practice transfer to the new buying dentist. One of the greatest fears buyers of dental practices have is that the patients of the practice they are purchasing are going to “jump ship” and leave when they take over. Buyers frequently... More »

Understanding how to appraise a dental practice is more than looking at the accounting numbers. Using accounting methodology for appraising practices only tells part of the story. For a buyer to understand what value the practice has, an appraisal encompassing accounting methodology and an understanding of practice management numbers is essential. To understand these numbers, you need to have a “benchmark.”... More »

Having been inspired by one of my client’s surfing décor in his office in Southern California, I could not help but draw the analogy of “catching the wave” during the most exciting time I have experienced in dentistry over the past 30 years. Never in the history of dentistry has there been so much opportunity! The space-age materials and equipment from lasers to CAD/CAM, from endo microscopes to drugs... More »

Dentists reach a time when they want to retire or do something else. Too often, they then find themselves with a practice they cannot sell. Part of the problem can be attributed to the fact that dental schools are graduating approximately 1,000 fewer dentists a year than are actually retiring or leaving the practice of dentistry. To further complicate the problem, the population is growing very rapidly,... More »

There are many misconceptions about dental practice transitions. Based upon my actual transition results, dental practice transfers are highly successful for both sellers and buyers. My more than 1,300 practice appraisals and the transition of more than 350 practices provided data for this article. Myth: Patient loss will be 20 to 30 percent. Fact: Less than 2 percent For an ADA table clinic... More »

According to recent ADA figures, only 6 percent of dentists in America today can comfortably retire at age 60. Such information is sobering and warrants the question: What measures are you taking to ensure the independence and freedom you desire upon retirement, particularly as you begin to approach retirement age? Most dentists are self-employed and do not have the luxury of tapping into corporate-sponsored... More »