How Much Is Your Orthodontic Practice Really Worth?

Posted on August 30, 2022

As an orthodontist practice owner, it’s important to know what your practice is worth. To get a clear picture of the value of your orthodontic practice, don’t simply guess. Get a professional valuation done. Determining the monetary worth of your practice is a complex task. Here is a breakdown of what to expect from an orthodontic practice valuation.

What Does An Orthodontic Practice Valuation Report Contain?

A comprehensive orthodontic practice report will have the business’s expected revenue and growth. It will identify the fixed expenditures and your company’s gross and net income. Other metrics that a valuation report will feature include the business location demographics, information on current and rate of new patients, and the human resource information likely to affect the monetary value of your business.

What Methods Are Used To Carry Out An Orthodontic Practice Valuation?

The most widely used orthodontic practice valuation methods include calculating the capitalized excess earnings and determining the asset value. Others are compiling the annual net receipts and averaging all past and forecasted annual earnings. According to American Dental Sales, there are roughly 1,500 dental practice sales in their data bank.

Why Is A Valuation Important?

There are many reasons why a valuation is important, besides the fact that, as a smart businessperson, you need to be aware of the monetary value of your business. Orthodontic practice valuations are also helpful when you want to sell your practice. The valuation gives you a better idea of what price to quote, which should include a profit margin.

An orthodontic practice valuation’s goal is to report on your business’s worth before you enter into a negotiation. It also plays a key role in mergers, partnerships, expansions, franchising, and when planning for your business.

When To Carry Out An Orthodontic Practice Valuation

Do it now. There’s no need or reason to delay. Valuations are not a preserve of big businesses or ones that want to sell or merge. An orthodontic practice valuation provides your business with important data and information for running your company efficiently and profitably.

You certainly want to be in the know as an entrepreneur. Getting a valuation done does two things. First, it tells you exactly how much your company is currently worth. Second, it gives you peace of mind and helps you strategize and make decisions for your business’s future. And should you decide to sell your business somewhere down the line, you won’t walk into the negotiation table blindly. Contact SmileBliss today for more helpful tips!

Click here to return to top of page arrow leading back to top