How do i value my dental practice?
This is a very simple question, however the answer to it is well beyond the scope of an article on any given website. There are over 200 variables that we assess when calculating the value of a dental practice. Many are obvious such as profitability, trading history, reason for sale, likely demand for this practice, carrying out a risk assessment of the practice etc. There are however many subtle factors that need to be taken into account such as geographical area, local competitors, type of contract, client base, reputation etc. The net result is that each practice is different and that there simply isn't a formulae or calculation that can be used to give you an exact figure. Should you be thinking about selling your dental practice then do talk to us before you use any other agent. We will discuss in detail all aspects relating to your practice before coming to a marketable value.
In 2008 the financial crisis presented and securing finance for any business became very difficult. This was also the case in the dental sales market.
Since 2008 confidence in the market has returned and yes the lenders are still lending. The criteria for financing dental practice sales is different for each lender and interestingly none of them publish any form of data that is easily accessible. The bottom line is that if this year you are thinking of securing some finance to purchase a dental practice then money is still available. The lenders see professional lending as a safe bet and as such the previously tight restrictions appear to be easing for the would be dental practice owner.
Don't forget that at Morgan Cox Dental we WILL NOT CHARGE YOU THE VENDOR (seller/owner) ANY fees for selling your dental practice. For a free consultation please fill in our dental practice sellers form
What are the reasons for wanting to get a professional valuation of your dental practice?
Quite simply one of the following:
Incorporation
Partner buy in/buy out
Divorce
Probate
Out right sale
Refinancing
What is the typical cost of getting a dental practice valuation?
We know of about 6 firms who offer dental practice valuations. The average price for these ranges from £800-£1200 excluding VAT. Typically the firm will send someone to look around your practice at a convenient time to discuss your business, look around your practice and to collect the key financial and supporting documentation. You will typically need to pay them up front and they will normally issue you with an estimated dental practice valuation within 7 days. Be careful when selecting who you use as lenders may not recognise the authority of some of these valuers particularly if they have a track record of providing inaccurate valuations.
Why not speak to Morgan Cox Dental. We do not charge for dental practice valuations when you subsequently sell your practice with us. Our friendly consultants will talk you through the sales process and various valuation methods available.
Visit our dental practice for sale listings