What is a “Rule of Thumb” for Dental Practice Valuations?
The phrase “Rule of Thumb” has been around for centuries. It refers to a quick, rough estimate—not an exact measurement—and that’s exactly how it’s used when people talk about dental practice values. The Common Rule of Thumb In dentistry, the most common rule of thumb is that a practice is worth 65% to 70% of […]
Buying a Dental Practice – What are Contingencies?
If you’re considering buying a dental practice in the St. Louis region, you’ve probably heard the term “contingencies.” But what does that really mean for you as a buyer? When purchasing a dental practice, the sale contract—often called an Asset Purchase Agreement (APA)—will spell out conditions that must be met before the deal can officially […]
Why Goodwill is the Most Valuable Asset of a Dental Practice & How to Maximize it When You Sell
In our previous post, we explained how Goodwill value is calculated in a dental practice: it’s the sale price minus the value of the tangible assets. But numbers only tell part of the story. So, what is Goodwill really? Goodwill is the heart of a dental practice. It’s the reputation of the dentist and staff, […]
What’s the Goodwill of a Dental Practice & How Does it Impact the Sales Price?
If you’re buying or selling a dental practice, you’ll hear the term Goodwill often. Most people have a general idea of what it means, but a clear understanding can make a big difference in a successful transition. Tangible vs. Intangible Assets A dental practice is made up of two types of assets: Tangible Assets – […]