How Much Is Your Dental Practice Really Worth?

It’s no secret that there’s a lot of untapped value potential in your practice, if you know where to look. As discussed previously, DSOs are relying on you not knowing the true value of your practice when they make an offer. But it takes a very special set of skills – and years of experience in the dental world – to properly identify and unlock a practice’s true value. As experienced dental practice advisors, JW Practice Advisory, has the expertise needed to find more value in your practice.

If you’re serious about maximizing the value of your practice before the selling it, you’ll want to hire a dental practice advisor, ideally, a few years in advance of the sale. This will allow you to identify and utilize value-increasing strategies that take longer to implement.

Ideally the advisor you hire will be a complete dental practice transition partner – an advisor-broker, if you will – that will help with the sale of the practice. As advisor-brokers with extensive experience in dental financing, we have a vested interest in the final sale price, so you are guaranteed that we will leave no stone unturned in the search for added practice value. Our value proposition is a deep forensic analysis to find untapped profit potential in your practice and leverage multiple buyers to increase demand, and thus perceived value.

Here are some of the ways we unlock potential value in your practice and increase sale price:

• Reducing overhead – This could be one of the first things an advisor would focus on, since the sooner the saving are found, the longer you’ll reap the benefits from them. An experienced advisor can help reduce lab fees, rent, and other expenses, freeing up cash flow for reallocation to other practice building ventures.
• Re-evaluating fee schedule – If it’s been a while since you’ve updated your fee schedule, our advisors will recommend new fees that will keep you competitive while increasing revenue.
• Updating the look of the practice – With key aesthetic updates and the proper technology upgrades, an old practice can transform into something that will leave a great first impression on potential buyers.
• Improving new patient flow – Our advisors can help you find the right marketing and advertising partners that will help increase new patient flow.
• Cutting discretionary expenses – Informed by years specializing in dental financing, we will go through the expenses with a fine toothed comb to find which discretionary expenses can be cut in order to increase practice value.
• Creating competition – By leveraging our buyer pool, we will be able to create higher demand for your practice from multiple potential buyers, resulting in the best possible price.

So how much is your practice really worth? It all depends on whether you’ve done your homework and have the right advisor-broker by your side. We’ve been able to accomplish practice sales as high as 243% of collections. Now, that’s a figure you can take to the bank.