How to get a Medical or Dental Practice Valuation

More doctors “Google” Dental Practice Valuation and Medical Practice Valuation than any other term in the practice transition space. 

And there’s good reason for this. If you’re exploring a sale or partnership – especially earlier than you expected – you may want to know a ball park range of what you could walk away with. Too low – maybe you keep plugging away towards retirement. Too high – maybe you realize you’ve got something special and decide to expand instead.

How can you get a Medical or Dental Practice Valuation? Practice Transitions Group offers three different pathways for doctors and dentists ready to explore the transition process:

  • Practice Valuation Calculator,
  • First Look or
  • Broker’s Opinion of Value.

A Practice Valuation Calculator

Who it’s for: A practice owner with an offer in hand, practice owner just getting their feet wet in the transitions space
What you need:  To get a dental practice valuation, you’ll need high level financials, like: 

  • Approximate yearly revenue
  • Revenue trend (is your business growing or declining?)
  • Percent of hygiene

Have ballpark estimates of these numbers?

How it works:  With our practice valuation calculator, you can get a ballpark valuation, or price, for your practice.  After completing the dental practice valuation calculator or the medical practice valuation calculator, our team sends you a price range. While the price is simply an estimate, the range offers clarity to doctors beginning to explore selling their practice or partnering with an operator.  

What happens next:  After a dentist submits the information,  the results are emailed directly to their inbox.  A broker will follow up with more resources in case the dentist is interested in learning about next steps. 

A “First Look”

Who it’s for: A Curious Seller, Open to feedback, likely to list his or her practice in three to six months

What you need:  To get a First Look from Practice Transitions Group, you’ll need

  • 12 months of financials,
  • Payroll reports, and
  • Select EMR/Practice Software reports.

How it works: During a first look, you submit one year of financials, payroll reports, and production reports.  Our underwriting team, including a former practice manager and CPA, runs the reports a through an expedited, higher-level underwriting process.  After an analysis, a lead broker offers a general appraised value of the practice.  In addition, the broker makes a custom action plan with action steps you can take to improve your practice’s value and marketability. 

Oftentimes, dentists want the highest price they can earn.  With our custom action plan, dentists have the choice to work on their practice in specific ways that we have found actually get them the most bang for their buck (vs what one might assume, like new equipment for example).  

What happens next:  After a dentist submits reports for a First Look, a lead broker will review the valuation with the potential client. Then, the broker will let the seller know, based on what their needs are, if we’re the right brokerage /a good fit to move forward.  

Plus, for dentists open to taking action to get more money for their practice, we develop a customized action plan.  The conversation sounds like, 

Hey, based on what you’ve told us, and where you want to get valuation wise, here are the three things you need to build your practice up in order to get that return.


Our CEO Thomas Allen talks about what’s happened since PTG started offering a First Look.

“I’ve done more and more First Looks before signing exclusivity agreements with clients, and it’s a good goal setter for everyone.  The doctor gets a transparent evaluation of the practice and exactly what they need to do for the exact return they want.  It’s a win win and it’s free to the client.  I’m not sure we offer a better service, expect of course, the eventual return we get them when we sell their practice for more than they thought possible.”

A Broker’s Opinion of Value

Who it’s for: A practice owner needing the most accurate estimate of market value we provide, typically needing to ensure the sale will meet specific financial goals

What you need:  To get a Broker’s Opinion of Value, you’ll need

  • 36 months of financials,
  • Payroll reports and
  • Select EMR/Practice Software reports.

How it works: A broker’s opinion of value from PTG requires that we really get under the hood of your practice. We look for any points of risk that buyers may uncover, and to ensure we identify all areas of value in your practice. Our team will dig deep and provide our “go to market” EBITDA/SDE, and test that against our existing market comparable data. 

What happens next: An experienced broker will take those inputs and provide a single value that we feel the practice has a 80% or higher chance of fetching in the market. That value plus any notes, highlights, or areas for improvement will be highlighted in a formal report for the client.

In summary

A valuation is a way to put a price tag on a practice with the market in mind, and Practice Transitions Group offers multiple options depending on how close you are to actually listing your practice.

Curious about what your practice is worth in the current market? Get a practice valuation from the most trusted M&A underwriting team in the U.S.

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