Oftentimes, potential purchasers refer to articles that they have read, stating that most dental practices that are for sale should not be worth more than 60-65% of last year’s gross revenue. This is an incorrect assumption, in general, as dental practice values can vary anywhere between 40% and 100% of the last year’s gross receipts based on the location of the practice. There are many other factors that can impact a dental practice’s value. In addition to location, other key factors that also influence practice values also include:
- Area Demographics
- Practice Facility
- Patient Base
- Economic Variables
- Practice Overhead
In the end, the practice’s value is not all about what has been reported on tax returns, but those key factors I have just presented, especially your practice’s location, will have a major influence on what the dental practice is truly worth.
To read the article in its entirety, please visit: bit.ly/1NeBdlu