1.Introduction: Why Valuation Matters for Dentists
2.Key Terminology
3.The Seven Common Valuation Methodologies
4.What Drives the Multiple: The Key Value Drivers
5.Buyer Types and How They Value Differently
6.Common Normalizations and Add-Backs
7.Red Flags That Lower Valuations
8.Practical Takeaways — Action Items for Dentists
9.References
Section I is generated from the numbers you entered; Section II is educational content explaining the methodologies practitioners and brokers use to value dental practices in 2026.
For Buyers
Which one of these are you?
Different kinds of buyers need different valuation methodologies. Pick the one that fits your situation and we’ll route you to the right flow.
Not sure? Pick the one closest to your situation. You can always change methodology later.
Let's begin
Welcome! Let's figure out what your practice is worth.
Give us about 30 minutes, and we'll turn your P&L into a banker-ready valuation.
No accounting degree required — we'll explain what we're doing at every step.
Upload a file or paste your numbers. Takes 2 minutes.
02
We'll walk you through
One simple question per screen. You approve every decision.
03
Get your number
A defensible value range you can take to a buyer or broker.
My reports
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About you
First, tell us a little about you and your practice.
This helps us pull the right benchmarks, tailor your results, and put your name on the report. Your information is encrypted in transit and at rest, and we never sell or share details that identify your specific practice. See our privacy policy for full details.
or enter your details below
Your information
Please enter your name to continue.
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Used on your valuation report — no mail is sent. If you've filled this out before on this device, click into any field to pick a prior entry.
Your practice
Please select your specialty to continue.
This determines which valuation multiples and price benchmarks apply to your practice — in DSO mode through specialty tier tables (orthodontics and oral surgery carry premiums), and in owner-operator (SDE) mode through specialty-specific price-to-collections corridors. Leaving the wrong selection here will produce an inaccurate valuation — please choose your actual specialty.
Your numbers
Now, let's load up your P&L.
Drop in a profit & loss statement from QuickBooks, Dentrix, or your accountant. We'll read it, categorize it, and walk you through what we found.
Before you continue — have BOTH reports ready
The wizard needs two documents open and ready before you start. If you don't have both, stop here and pull them now — running the wizard half-prepared is the single biggest reason people abandon mid-flow.
Your 12-month P&L — a complete calendar year, fiscal year, or trailing-twelve-months statement (from QuickBooks, Dentrix, your accountant, or any other accounting source). Upload it below.
Your Collection by Provider report — from your Practice Management software (Dentrix, Eaglesoft, Open Dental, Curve, etc.), covering the exact same start and end dates as the P&L. You'll need this for the collections-split screens later in the wizard.
Date ranges across the two documents must match exactly — same start date, same end date. Not “last 12 months,” not “year-to-date.” If they don't match, the valuation comes out silently wrong.
What counts as 12 months: a complete calendar year, a complete fiscal year, or a trailing twelve months (TTM) through your most recent closed month. Anything shorter (a quarter, year-to-date, or partial year) will skew your EBITDA.
TTM = the last 12 months of activity rolling forward (e.g., as of April 2026, TTM = May 2025 through April 2026). Most accounting software can export this directly.
Drop your P&L here
PDF, Excel, or CSV — up to 20 MB
— or —
Quick manual entry
Enter TTM totals for each category. Anything you leave blank or set to $0 will be skipped.
Loaded.
Summary
Nice — we read through your P&L.
Here's what we pulled. Before we do any adjusting, let's walk through the categories together to make sure everything landed in the right place.
Most lines land in the right place. If this looks right, just click Next. You only need to move a line if it’s clearly miscategorized. Your add-backs and how we value the practice come up in a few screens.
Period check — please confirm
To upload a different P&L, click Back and re-upload a 12-month or trailing-twelve-months statement.
Parse warning — please review the line items below
We had trouble parsing parts of your P&L — likely a multi-line or merged-cell
Excel export from your accounting software. We rolled the unrecognized expenses
into a single line called "Uncategorized expenses" so the math
reconciles to your reported total.
What to do: on the next few category-review screens, look for the
"Uncategorized expenses" line under Operating expenses. If you can tell
what category most of it should belong to (owner comp, staff payroll, etc.), use
the category dropdown to reassign it. If you can't tell, leave it as-is — it's
already in the expense base, so it won't inflate your EBITDA.
Reconciled amount:—
Line items read
—
Total revenue
—
Total expenses
—
Period this P&L covers
—
Reference this period whenever you pull a matching report from your Practice
Management software, payroll provider, or any other source. All downstream
inputs (collections splits, personal expenses, rent) need to cover the same
date range.
We'll review five category groups next — revenue, cost of goods, operating expenses,
owner compensation, and everything else. Should take about 60 seconds each.
Heads up — you don't need to flag your own add-backs as we walk through the
categories. After the category review, we'll automatically scan your P&L for the
common owner add-backs — including owner / doctor compensation (W-2 salary,
officer pay, guaranteed payments, and owner draws), vehicle, CE, club dues,
retirement, owner life insurance, charitable giving, and more — and show them to
you for a yes/no confirmation on the add-back screen.
Review · 1 of 4
First up — your revenue.
These are the lines we categorized as income. Does this look right? Click the category on any line to move it somewhere else.
Total revenue:—
Review · 2 of 4
Next — cost of goods.
Dental supplies, lab work, and associate doctor pay. These are the direct costs of doing dentistry.
Total COGS:—
Review · 3 of 4
Operating expenses.
Staff payroll, rent, supplies, and everything else it takes to keep the lights on.
Total OpEx:—
Review · 4 of 4
Now — your owner compensation.
This one matters a lot for your valuation. Buyers use owner comp as a signal for how much
"doctor work" is baked into the practice — and they back it out (or replace it) when
calculating what they can pay you.
Why we separate this out: An associate dentist who replaces you
costs ~30% of the collections they generate. Whatever sits above that becomes part
of your add-back. Don't worry — we'll walk through all of this on the next few screens.
Total owner comp:—
Auto-detected
Officer compensation we found
These Officer's ___ lines live on your P&L — typical for a C-corp or
S-corp dental practice where the owner-doctor is paid as a corporate officer (W-2, benefits,
employer payroll tax). They stay in their original expense category for the reported-income
math, but we also treat them as owner compensation and add them back on the add-back screen.
Uncheck a line there if it shouldn't be added back.
Officer comp total:—
Quick cross-check. Compare the total above to your W-2 Box 1
(plus any employer-paid retirement contributions, group health insurance, and the practice's
portion of payroll taxes for the owner) and your payroll register. For S-corp
and C-corp practices, those owner-related amounts can sit on separate P&L lines and may
not all have been pulled into the total above. If your true draw from the practice was higher
than what you see here, add the difference on the manual add-backs screen.
Where you stand today
Here's where you stand on paper.
This is what shows up on your tax return. Now let's figure out what a buyer will actually pay — usually higher, once we adjust for the things they wouldn't inherit.
Net income
—
What's left after every expense.
Reported EBITDA
—
Net income plus interest, taxes, depreciation, and amortization.
Almost no dental practice sells for a multiple of this number. Adjusted EBITDA
is what matters — and we're about to calculate it together.
Buyer type
Who might buy your practice?
The answer changes how we calculate your value. Not sure?
Quick decision help
Three quick questions — we'll recommend the mode that fits your practice. You can always override.
1. What's your practice's annual revenue (trailing 12 months)?
2. How much of the clinical production do you personally do?
3. What's your preference for the buyer?
Our recommendation
—
Auto-selected
—
DSO or group buyer
Most common
A corporate group buys your practice and keeps the business running. They'll either pay you as an employee or hire a replacement doctor.
• Valuation: Adjusted EBITDA × 4 to 8
Another dentist (solo buyer)
Recommended
An individual dentist buys your practice and works in it themselves. Their own labor replaces yours, so their "salary" is what's left over.
• Valuation: SDE × 1.8 to 2.6
• 100% of your comp is added back
Click either card above to switch — your choice always wins over the quiz recommendation.
Replacement doctor
Let's figure out the new doctor's pay.
When a buyer takes over the practice, they either keep the existing dentist on salary or hire a replacement. Either way, that ongoing cost reduces EBITDA before computing what the practice is worth to the buyer. Let’s set a fair market rate.
Replacement doctor's pay rate
30%
As a percentage of their own personal collections. Benchmark for general dentistry: 25–35%, with 30% as the median.
25%30%40%50%
Your personal collections (est.)—
At 30% comp rate—
This number is what a DSO will subtract from your Adjusted EBITDAEarnings before interest, taxes, depreciation, and amortization — adjusted to remove non-recurring costs and normalize owner compensation to market rate. This is the number a DSO buyer multiplies to value your practice. — it's the real ongoing cost of keeping a doctor in the chair.
Owner collections
How much did you collect this year?
A buyer wants to know how much of the practice's collections run through the owner — that's
the revenue base for the replacement-doctor calculation. Higher owner concentration means
a more owner-dependent practice, which a DSO offsets by paying a market-rate replacement
against your share. Enter the dollar amount; we'll compute the percentage split for you
on the recap screen.
Critical — date match required
The date range on your Practice Management report must exactly match the date range on the P&L you uploaded. Same start date, same end date. Not “last 12 months,” not “trailing twelve,” not “year-to-date” — the same start and end dates. If they don't match, your provider mix will be wrong even if the totals look close, and your valuation will be silently off.
Where to find this: in your practice management software
(Dentrix, Eaglesoft, Open Dental, Curve, etc.), run a
Collection by Provider report for the same date range as your P&L.
Use the Collections column for yourself (or whichever provider is the
practice owner). Collections is what reconciles to your P&L revenue line.
Date-range mismatches between the PMS report and your P&L are the #1 source of
valuation error — buyers will reconcile the two during diligence, so get them aligned now.
Total$0
Example: if your Collection by Provider report shows $792,606 next to your name,
enter 792606. For a partnership or group practice with multiple owner
doctors, click "Add another owner doctor" and enter each one's collections separately.
Hygiene collections
How much did your hygiene team collect?
Hygiene is recurring, high-margin, and not tied to the owner — buyers pay a premium
for practices with strong hygiene programs because it's the part of the business that
transfers cleanly. A hygiene share above 25% of total collections typically adds
0.3–0.5× to your multiple.
Critical — date match required
Pull hygiene collections from the same Collection by Provider report you used on the previous screen, covering the same date range as your uploaded P&L. Mismatched periods will silently skew your hygiene-to-total ratio and the premium it earns you.
Where to find this: on the same Collection by Provider report,
use the Collections column and sum the lines for each hygienist
(RDH, RDHEF, hygiene team — labeled differently across PMS systems but always tagged
as a hygienist role). If your PMS lumps hygiene under a single "HYG" provider, that
one collections number is your answer.
Total$0
Add a row for each hygienist on your PMS report. If your PMS lumps hygiene under a single
"HYG" provider, leave it as one row.
Associate collections
Any collections from associates or specialists?
W-2 associates only on this screen. Non-owner doctors whose wages
appear on your P&L’s Salaries line. An established W-2 associate
driving 20–30% of collections is actually worth a premium because it de-risks
the transition. If your associates are 1099 (any kind), skip this screen
— they go on the next provider screen. Most solo owners enter
$0 here.
Critical — date match required
If you DO have W-2 associates and are entering their collections below, pull them from the same Collection by Provider report covering the exact date range of your uploaded P&L. Any mismatch shifts the owner-vs-associate split and silently skews the replacement-doctor math downstream.
What goes here: sum each W-2 associate’s Collections
column on the Collection by Provider report. W-2 associates have their wages
on your P&L’s Salaries line.
If you have 1099 associates — SKIP this screen. That includes
1099s whose comp shows up on your P&L as Contract Labor,
Professional Fees, or Associate Dentist Fees, AND
1099s paid via owner draws or distributions (off the P&L entirely). Add them
all on the next Additional providers screen. Their production will
auto-fill back here so your collections-split reconciles, and the wizard applies the
right replacement-comp + employer payroll-tax math for the 1099→W-2 conversion
a DSO buyer will absorb.
Use the manual rows below only for W-2 “ghost” associates
you won’t list on the next screen (e.g., a former W-2 associate who left
mid-year, whose production is still in your annual practice revenue).
Total$0
Collections split
Here's your collections split.
Based on the dollars you entered, here's how collections break down across owner,
hygiene, and associates. Sanity-check the numbers below — if anything looks off,
click Edit on that row to jump back and adjust.
Total collections
$0
Owner doctor
$0
0%
Associates
$0
0%
Hygiene
$0
0%
Non-clinical revenue
Products, retail, membership programs — $0 if none
$
Anything on your P&L that isn't on a Collection by Provider report — water picks,
whitening kits, electric brushes, retainers, membership fees. We use this to remove
non-clinical revenue from the replacement-doctor calculation, so retail-heavy
practices aren't penalized.
Heads up — your collections don't match your P&L.
Click Edit on any row above to jump back and adjust. Common causes: pasting an associate
number into hygiene by mistake, or missing a provider entirely. Small rounding differences
(under $100) are normal and ignored.
Why this split matters:
A DSO buyer subtracts a market-rate replacement doctor's pay against the owner's share
of collections — that's the cost of replacing you in the chair. Hygiene and associate
collections transfer cleanly because the people doing the work stay. The higher your
owner share of collections, the bigger that replacement-doctor deduction will be when
we compute Adjusted EBITDAEarnings before interest, taxes, depreciation, and amortization — adjusted to remove non-recurring costs and normalize owner compensation to market rate. This is the number a DSO buyer multiplies to value your practice. on the next screens.
Outside-P&L providers
Anyone producing outside your P&L?
This screen is for non-owner clinicians who produce in your practice
but don't appear on the P&L as wages — typically associates, oral surgeons, or other
specialists paid via draws, distributions, or 1099. A buyer will keep
paying them (or hire a like-for-like replacement at the same rate), so their replacement
comp has to come out of EBITDA regardless of which buyer type you've selected.
Critical — date match required
Collection figures entered here should cover the same date range as your uploaded P&L — pull each 1099 / draw-based provider's collections from your PMS Collection by Provider report using the exact same start and end dates. These numbers auto-fill into the Associate collections total upstream, so a period mismatch here silently corrupts the collections split and the replacement-doctor math.
The owner doctor goes on the previous screen, not here — even if the
owner takes draws or distributions instead of a W-2 paycheck. Most solo GPs leave this
screen empty. Hygienists are not entered here either, even if they're 1099,
because their production is already accounted for above.
If your P&L has a Contract Labor, Professional Fees, or Associate Dentist Fees line
That category catches three very different things, and each gets handled differently:
Associate doctors / 1099 clinical producers — if any portion of Contract Labor is for clinicians who produce patient revenue, add them below and check the “Comp already on my P&L” box on their row. Their production still gets counted in the collections split, but we won’t deduct their replacement comp again (it’s already in your P&L expenses). We’ll still apply the employer payroll tax a buyer pays after converting them from 1099 to W-2.
Owner-related contractors — family members, owner’s spouse doing books, friends on retainers, anything that won’t continue under new ownership. Don’t enter these here; they belong on the manual add-backs screen because a buyer wouldn’t inherit those expenses.
Normal ongoing contractors — cleaning service, IT support, lab fees, payroll service, marketing agency. Leave these where they are; they’re legitimate ongoing operating expenses the buyer will continue paying.
Auto-fill: collection amounts you enter here automatically appear
in the Associates dollar total on the previous Associate
collections screen, so your collections reconcile to P&L revenue without
double-entry. Edit a provider here to update the total there.
Provider list
Add anyone paid through draws, distributions, or 1099. Default replacement rates: GP 30%, OS 37%, Endo/Perio/Pros 35%, Pedo 30%, Ortho 35%.
Add-backs we found
Here's what we flagged as likely add-backs.
These are costs that typically follow the owner, not the practice. Uncheck anything you think should stay in the expense base.
Total auto add-backs:—
Real estate
Let's talk about your rent.
If you (or a related LLC) own the building, or if rent isn't showing up on
the P&L at all, a buyer will normalize rent to fair-market. We'll do
the same here so your EBITDA reflects what the business actually costs
to run with an arm's-length landlord.
Pre-filled from the Rent line on your uploaded P&L. Adjust only if the parsed number is wrong for the same period the P&L covers — not to reflect a more recent rent increase. (If rent recently changed, the post-close rent adjustment goes in the buyer-facing market rent below.)
Industry reference: dental rent typically runs 5–8% of collections.
—
Rent normalization adjustment:—
Enter amounts above to preview the adjustment.
Why this matters. Owning the building can add $200K–$800K
to your valuation by itself, but only if the practice's rent is
normalized to market. Above-market rent costs buyers dollar-for-dollar
against their offer; below-market or zero rent artificially inflates
EBITDA and will get caught during due diligence.
Now let's check the rent.
We’ll use the rent figure from the P&L as reported, since you’re inheriting the existing lease. If the rent on the P&L is misstated — for example, a related-party lease at non-market rates, or no rent because the seller owns the building — flag the adjustment below.
Enter what an arm's-length landlord would charge per year for this space.
Industry reference: dental rent typically runs 5–8% of collections.
—
Rent normalization adjustment:—
Enter a corrected rent above to preview the EBITDA adjustment.
Why this matters. Most buyers assume they're inheriting the lease at the rate the seller has been paying. But if that rate is significantly above or below market — or if the seller owns the building and there's no rent line at all — that's a real cost the buyer has to absorb. Flagging it here normalizes the EBITDA so the headline number reflects what the practice actually costs to operate at arm's length.
Market rent
What would market rent be for your space?
Since there's no rent on your P&L, a buyer will assume they'll need
to start paying fair-market rent post-close. That cost has to come out
of EBITDA so the number reflects what the practice actually costs to
operate at arm's length.
Industry reference: dental rent typically runs 5–8% of collections.
—
Rent normalization adjustment:—
Enter a market rent estimate above to preview the adjustment.
How to estimate market rent. If you've never paid for
your space, a quick reality check: dental practices typically run 5–8%
of collections in rent. The Use 6.5% button above plugs in the
midpoint as a starting point — adjust up for prime metro locations,
down for rural / mid-market areas.
One-time costs
Anything happen this year that won't happen again?
Legal settlement. Major equipment repair. COVID-related shutdown costs. We add these back
so your EBITDA reflects a "normal year" going forward.
Don't double-count — skip anything we already flagged on the auto
add-back screen (step 13) or the rent-normalization screen. Only enter a
new one-time cost that we haven't caught yet.
Nothing here? Leave it blank and click Next.
Family on payroll
Anyone on payroll above what they'd earn elsewhere?
Spouse getting paid $80K to "do the books"? A teenager on staff so they can fund a Roth IRA?
It happens all the time — and buyers will back out the portion above market.
Enter only the amount above what their role would normally pay.
Don't double-count — if a family member's line was already caught
by the auto add-back scan on step 13, don't re-enter it here. Only add an
above-market portion that wasn't already flagged.
Anything else personal?
Any personal expenses we haven't caught yet?
Cell phone bill. Home office. Owner's gym. A trip that was more vacation than CE.
If you ran it through the practice and it was really personal, add it up here.
Don't double-count — the auto scan on step 13 has already pulled
the usual suspects (vehicle, meals, club dues, CE travel, charitable giving, etc.).
Only enter personal items here that weren't in that list.
Critical — match your P&L period
Only add up personal items charged through the practice during the same 12 months covered by your uploaded P&L — not the last few years, not lifetime. If your P&L is calendar 2025, include only the personal items run through the practice in calendar 2025.
Skip this if the auto add-backs already covered everything.
One more step
Your number is ready.
We've finished your analysis — your practice's adjusted earnings and
valuation range are locked in. Unlock to see your number and the
full report.
Full valuation report
$499Regular price $499 —
$299
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Your Adjusted EBITDA or SDE, shown with the full add-back waterfall
A practice valuation range with the relevant tier grid (DSO or owner-operator)
A Practice Profile Analysis explaining where in the range a buyer offer is likely to land
An Effective Proceeds Considerations section covering deal-structure factors
An appendix on how dental practices are valued in 2026, with references
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Your number
Here it is — your Adjusted EBITDA.
$—
Margin: —
How we got here
Net income—
+ Interest, taxes, D&A—
+ Owner comp & benefits—
+ Other auto add-backs—
+ Manual add-backs—
± Rent normalization—
− Replacement doctor comp—
Total—
Practice profile
Tell us about your practice
The factors below help explain where in your published valuation range a real buyer offer is
likely to land. Every question is optional — you can skip any section, or skip the whole
page, and your headline range stays the same. The selections you do make appear in your final
report as a Practice Profile Analysis.
Risk ProfileGrowth OptionalityDeal Structure
These factors affect what you walk away with at close, but do not modify your headline
valuation range. They appear in a separate Effective Proceeds Considerations section of
the final report.
Profile lean (preview)
Not assessed
Your selections nudge this lean. Your headline range is unchanged.
Skip any section you prefer not to answer. The tier-lean indicator and the narrative are
purely interpretive — they do not change your published valuation range.
Practice value
Your practice is worth somewhere between…
—to—
Based on DSO / group-buyer multiples (4×–8× Adjusted EBITDA)
This is a starting point, not a binding offer. Real transactions depend on location, patient
mix, lease terms, equipment age, and buyer appetite. We recommend sharing this with a broker
or transition advisor before committing to a price.
Your full report (approximately 20 pages) includes a cover page, a valuation
summary with the waterfall and tier grid, the Practice Profile Analysis, the
Effective Proceeds Considerations, and an appendix covering how dental practices
are valued in 2026. One-time payment — instant access.
Tip: in the print dialog, click More settings and uncheck
Headers and footers for the cleanest PDF.
This report stays reprintable from My Reports on the welcome screen for 12 months.
Section I — Your EBITDA Analysis & Valuation Summary
Enterprise value is the product of two figures you can influence: your Adjusted EBITDA and the multiple a buyer applies. The grid below applies your valuation multiples to both your current EBITDA and the best-in-class EBITDA range for your specialty — so the current and potential range sit side by side.
—
Rule-of-Thumb Cross-Check
Brokers have long quoted dental practice values as a percentage of annual collections — traditionally 60–80% for general practices. That shortcut ignores profitability entirely, which is why detailed appraisals routinely diverge from it (see Appendix §3.3). It remains a useful sanity band, so here is this report’s range against it.
Method
Range
Traditional rule of thumb (0.60×–0.80× collections of —)
—
This report (earnings multiples)
—
—
About the Multiples You May Have Heard
Dental M&A headlines often cite 8×–12× EBITDA. Those are platform transactions: groups with $3M+ in EBITDA, management infrastructure, and multiple locations, selling to private-equity-backed consolidators. The same industry uses smaller multiples on bigger earnings bases as deals get smaller and more owner-dependent: single-location DSO add-ons typically trade at 4×–6× EBITDA, independent doctor-to-doctor sales at 3.5×–5.5× EBITDA, and owner-operator sales at 1.5×–2.6× SDE — where the multiple is lower precisely because the owner’s full compensation stays inside the earnings figure.
—
Practice Profile Analysis
The factors below help explain where in your published valuation range a real buyer offer is
likely to land. They are interpretive context based on the selections you made in the Practice
Profile screen and do not modify your headline range above.
Profile lean
—
Factors that may pull toward the discount end of the range:
Factors that may support the premium end of the range:
Other selections noted:
Effective Proceeds Considerations
These deal-structure factors do not modify your headline valuation but materially affect what
you walk away with at close.
Inputs & Assumptions
Valuation mode
—
Replacement-doctor pay (% of collections)
—
Collections split (owner / hygiene / associates)
—
Auto add-backs (detail)
—
Manual add-backs — one-time costs
—
Manual add-backs — family-on-payroll adjustment
—
Manual add-backs — personal expenses
—
Rent normalization
—
This is a starting point, not a binding offer. Real transactions depend on location,
patient mix, lease terms, equipment age, payor mix, and buyer appetite. We recommend
reviewing this report with a broker, transition advisor, or credentialed appraiser
(CPA, CVA) before committing to a price or accepting an offer.
Appendix — How Dental Practices Are Valued
This appendix explains the seven most common valuation methodologies used in dental practice transactions today, the key terminology you’ll encounter in negotiations, the practice characteristics that push multiples up or down, and the normalizations that turn reported earnings into a buyer-ready number. It is intended to help you interpret the results in Section I with a more complete understanding of how the market actually values practices in 2026.
1. Introduction: Why Valuation Matters for Dentists
For many dentists, the practice represents their largest professional asset—often worth $500,000 to $3 million or more. Yet valuation rarely receives the same strategic attention as clinical outcomes or profitability metrics. Whether you are planning a transition, considering a partnership buy-in, navigating divorce proceedings, managing estate planning, or responding to a Dental Service Organization (DSO) offer, understanding how your practice is valued can mean the difference between leaving hundreds of thousands of dollars on the table and capturing its true market worth.
The stakes are not academic. A practice generating $900,000 in annual gross revenue and 35% EBITDA margin can support valuations ranging from roughly $1.3 million (at 3.5× EBITDA multiple) to $2.1 million (at 5.5× EBITDA multiple), depending on buyer type, location, growth trends, and practice characteristics. Identical practices—same production, same location, same equipment age—can sell for vastly different prices based on how the business is structured and presented.[1]
Dental practice valuation is not a one-size-fits-all exercise. The “right” value depends on:
Who is buying. An individual dentist buyer values the practice differently than a DSO or private equity platform.
What method is being used. Multiples of EBITDA, Seller’s Discretionary Earnings (SDE), gross revenue, and discounted cash flow can yield different headline numbers for the same practice.
What assumptions are being made. Assumptions about owner compensation, normalized expenses, growth rates, and discount rates drive the final number up or down.
This appendix walks you through the seven most common valuation methods used in the dental industry, the terminology you’ll encounter, the key value drivers that push a multiple higher or lower, and the practical steps you can take to either prepare for sale or pressure-test a valuation you’ve received.
2. Key Terminology
Before diving into valuation methods, here are the key terms you will encounter:
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). The profit a practice generates before subtracting interest expense, income taxes, depreciation, and amortization. For a dental practice with $900,000 in gross revenue, 60% overhead, and no owner compensation paid, EBITDA is $360,000. EBITDA is the metric most commonly used by DSOs, private equity buyers, and larger group practices in 2026.[2]
SDE (Seller’s Discretionary Earnings). The total financial benefit available to a single owner-operator: operating profit with the owner’s full compensation and perks added back, and no deduction for a replacement provider. SDE answers the question an individual buyer actually asks—how much cash does this practice put in the owner’s pocket each year—and is particularly useful for small practices where the owner doctor delivers most of the clinical production. If your practice generates $900,000 in revenue, has 60% overhead before owner pay, and you take $250,000 in compensation, net income is $110,000 and SDE = $110,000 + $250,000 = $360,000. (The DSO/EBITDA convention, by contrast, deducts a market-rate replacement doctor’s pay; that deduction belongs to Adjusted EBITDA, not SDE.) SDE is widely used by individual dentist buyers.[3]
Adjusted EBITDA. EBITDA after adding back one-time expenses, owner personal expenses, and other non-recurring items. For example, if EBITDA is $360,000 but you had a $40,000 roof repair this year (not expected to recur), Adjusted EBITDA = $400,000. Normalizing the P&L to show sustainable earnings is critical for credible valuations.[4]
Multiple. The factor applied to earnings to derive enterprise value. A practice with $360,000 EBITDA and a 4.5× EBITDA multiple is worth $1.62 million. Multiples for dental practices typically range from 2.5× to 6× EBITDA for independent sales and 4× to 12× for DSO platform transactions.[2]
Goodwill. The intangible value of a dental practice above the value of its tangible assets (equipment, furniture, leasehold improvements). Goodwill includes patient loyalty, staff reputation, referral relationships, location brand, and clinical excellence. Goodwill accounts for 70–90% of typical dental practice valuations; tangible assets (equipment, real estate) make up only 10–30%.[5]
Tangible vs. Intangible Assets. Tangible assets are physical items: dental chairs, sterilizers, computers, leasehold improvements. Intangible assets are non-physical but valuable: patient records, staff relationships, non-compete agreements, community reputation. In asset-based valuations, tangible assets typically comprise 10–20% of total practice value.[6]
Capitalization Rate (Cap Rate). A discount rate (expressed as a percentage) used to convert a single year’s earnings into a valuation. If a practice generates $300,000 in normalized annual earnings and the cap rate is 25%, the valuation is $300,000 ÷ 0.25 = $1.2 million. Typical cap rates for dental practices range from 20% to 30% depending on practice stability and risk.[7]
Discount Rate. The annual percentage rate used in Discounted Cash Flow analysis to convert future earnings into present-day dollars. A higher discount rate reflects higher perceived risk; a lower rate reflects lower risk. Discount rates for dental practices typically range from 15% to 30% depending on practice stage and stability.[8]
Non-Compete Agreement. A legally binding agreement that the selling dentist will not open a competing dental practice (or work in dentistry) within a defined geographic area for a defined period (typically 2–5 years). Non-competes are worth $25,000–$150,000 depending on market size and competition.
3. The Seven Common Valuation Methodologies
3.1 · EBITDA Multiple Method
What It Is. The EBITDA Multiple method values a practice by multiplying a normalized year (or average) of Earnings Before Interest, Taxes, Depreciation, and Amortization by a market-derived multiple. It is the most commonly used method in the dental industry in 2026, especially for DSO acquisitions and multi-doctor practices.[2]
How It’s Calculated. (1) Calculate one year of EBITDA from the P&L. (2) Normalize EBITDA by adding back one-time expenses, owner perks, and owner-compensation adjustments. (3) Select an appropriate market multiple based on practice characteristics. (4) Multiply Normalized EBITDA × Multiple = Enterprise Value.
Worked Example. A general practice with $1.2M gross revenue and $720K normalized operating expenses produces $480K EBITDA. At a 4.5× EBITDA multiple (stable single-location practice with established staff and moderate growth), valuation = $480,000 × 4.5 = $2,160,000.
When to Use It. Transactions where buyer and seller have reliable historical profit data; multi-doctor practices or DSO add-ons where clinical production is less dependent on a single owner; markets with comparable transaction data.
Limitations. Assumes past EBITDA reliably predicts future performance; does not account for expected growth or decline post-transaction; highly sensitive to normalization assumptions (disputed add-backs can shift valuations $200K–$500K).
Typical Multiples. General dental practices typically trade at 3.5× to 5.5× EBITDA for independent sales. DSO platform acquisitions command 8× to 12× EBITDA; DSO add-ons typically 4× to 6×. Specialty practices (oral surgery, periodontics, orthodontics) often trade 1–2 multiples higher due to higher margins and stronger referral networks.[2][9]
What It Is. SDE represents the total cash benefit available to an owner-operator: operating profit with the owner’s full compensation added back and no replacement-salary deduction, because the buyer is assumed to step into the owner’s chair. Ideal for smaller practices (under $1M in revenue) where the owner-dentist directly delivers a large percentage of clinical care.[3]
How It’s Calculated. Start with net income. Add back owner’s actual W-2 compensation, owner personal expenses paid through the business, and one-time/non-recurring expenses. No replacement salary is subtracted—the owner’s clinical seat is assumed to be filled by the buyer. Multiply the result by a market multiple (typically 1.8× to 2.6× for independent sales). The lower multiple range relative to EBITDA multiples is precisely what accounts for the owner’s labor remaining inside the earnings figure.
Worked Example. Solo general practice: net income $150K + owner W-2 $200K + owner personal expenses $30K + one-time roof repair $15K = $395,000 SDE. At a 2.2× SDE multiple, valuation = $869,000.
When to Use It. Solo and small-group practices under $1.2M revenue; individual dentist buyers; situations where historical cash flow is more important than growth potential.
Limitations. Assumes the new owner will also be an owner-operator (not valid for DSO or large group buyers, whose EBITDA convention deducts a replacement doctor’s market-rate pay instead); highly sensitive to how well owner compensation and add-backs are documented; does not explicitly value growth or competitive advantage.
Typical Multiples. Current 2025–2026 market data shows SDE multiples for general dental practices typically falling in a 1.5×–2.5× range, with a 1.7×–2.0× median for private-buyer transactions. Practice Worth uses tier multiples of 1.8× (Discount), 2.2× (Market), and 2.6× (Premium) for general dentistry. Specialty practices (oral surgery, endodontics, periodontics, pediatric, orthodontics) and exceptional turnkey GP practices can command higher multiples; the high-margin band in this report applies revenue-anchor compression so the headline number reflects what private buyers actually pay for high-margin operations. For specialty practices, this report pairs the SDE multiples (orthodontics and oral surgery carry a modest premium table) with specialty-specific price-to-collections corridors drawn from published doctor-to-doctor transaction data — orthodontics 75–90% of collections, oral surgery 70–85%, periodontics 65–80%, endodontics 60–75% — applied through the high-margin adjustment, so a specialty practice at typical specialty margins prices onto its own corridor rather than the general-dentistry one.[3]
3.3 · Percentage of Gross Revenue (Rule of Thumb)
What It Is. A quick, rough-and-ready valuation based on a percentage of annual gross revenue or collections. Traditional rule of thumb: 0.6× to 0.8× gross revenue. Simple, but often undervalues well-managed practices.[10]
Worked Example. A practice with $900K gross revenue at 0.75× → $675,000. But if the same practice earns 40% EBITDA margin ($360K EBITDA) and is valued at 4.5× EBITDA, valuation = $1,620,000 — more than double.
When to Use It. Very quick ballpark estimate when time is limited; practices where detailed financial records are unavailable; as a sanity check against more rigorous methods.
Limitations. Ignores profitability entirely. A $1M practice at 25% EBITDA margin and a $1M practice at 45% EBITDA margin receive identical valuations, yet the second is worth far more. Research shows this method systematically undervalues practices; average valuations using detailed business appraisals run roughly 62% higher than the 0.8× rule of thumb.[10]
Typical Ranges. Fee-for-service practices average 1.3× gross revenue; heavily PPO-discounted practices average 0.9×. General practices typically fall in the 0.75×–1.0× range.[2]
3.4 · Asset-Based / Book Value Method
What It Is. The asset-based approach values a practice as the sum of its tangible assets (equipment, furniture, improvements, real estate) minus liabilities, adjusted to reflect fair market value of each asset. Useful when tangible assets have significant value (e.g., the practice owns its building) but significantly undervalues practices built on intangible goodwill.[6]
Worked Example. Equipment $180K + leasehold improvements $60K + computers $25K + furniture $15K + real estate $400K − equipment loans $100K − AP $30K = $550,000 adjusted book value. This excludes goodwill (patient loyalty, referral networks, staff relationships) likely worth $800K+, making the full value closer to $1.35M.
When to Use It. When a practice owns real estate; distressed practices where intangible value is questionable; tax or legal purposes where asset-by-asset valuation is required; as a floor valuation.
Limitations. Tangible assets comprise only 10–20% of typical dental practice value.[6] The method can significantly undervalue goodwill; asset-based valuations alone typically understate practice value by 50–70% compared to income-based approaches.
3.5 · Discounted Cash Flow (DCF) Method
What It Is. DCF projects a practice’s future cash flows over 5–10 years, applies a discount rate to convert those future flows to present-day dollars, and adds a terminal value. Theoretically the most defensible method because it reflects actual earning power and growth trajectory.[8]
How It’s Calculated. Project 5–10 years of normalized cash flow; select a discount rate (15–30% for dental practices); calculate present value of each year’s projected cash flow (PV = CF ÷ (1 + r)t); project a terminal value and discount it; sum all present values.
Worked Example. A stable practice with $360K current EBITDA growing 3% annually, 25% discount rate, 4.5× EBITDA terminal multiple: PV of years 1–5 cash flows ≈ $1,014,635 + PV of terminal value $596,482 = ≈$1.61M enterprise value.
When to Use It. Practices with strong historical growth and clear forward projections; strategic investment decisions; practices undergoing operational improvements; PE or large-group buyers planning growth investment.
Limitations. Highly sensitive to growth rate and discount rate assumptions — a 1–2% change in either can shift valuation by $200K–$400K; requires detailed financial projections that may be unreliable for small practices.
3.6 · Comparable Sales (Market Approach)
What It Is. Values a practice by examining actual prices paid in recent sales of similar practices in the same geographic market. Most grounded in real-world transaction data and widely used by brokers.[11]
Worked Example. Three comparable general practices recently sold in your metro: Practice A $1.85M / $420K EBITDA = 4.4×; Practice B $2.10M / $480K = 4.4×; Practice C $1.95M / $440K = 4.4×. Average 4.4×. Your practice has $450K EBITDA → $1,980,000.
When to Use It. When multiple recent sales of similar practices are available; for independent practice sales; in negotiations with DSO buyers (to argue for a market-based multiple above their initial offer); as a reality check against other methods.
Limitations. Relies on availability of comparable transaction data; “comparable” adjustments can be subjective; historical sales may not reflect current conditions (interest rates, inflation, buyer appetite).
Market Data. In 2025–2026, general practices sold at 3.5×–5.5× EBITDA in independent transactions; DSO add-ons typically 4×–6×.[2][9]
3.7 · Capitalization of Earnings Method
What It Is. Values a practice by dividing a single normalized earnings figure by a capitalization rate (cap rate), a percentage reflecting the appropriate return an owner should expect. Simpler than DCF but less precise because it uses a single year rather than projecting future years.[7]
Formula. Enterprise Value = Normalized Annual Earnings ÷ Cap Rate. The cap rate is the inverse of the multiple: a 4× multiple corresponds to a 25% cap rate.
Worked Example. $300K normalized EBITDA at 24% cap rate (4.17× multiple) → $300K ÷ 0.24 = $1,250,000. At 20% cap rate (5.0× multiple) → $1,500,000. A small 4% change in cap rate produces a $250K swing.
Limitations. Assumes static earnings (no growth or decline); highly sensitive to cap rate selection — a 1–2% change produces 8–15% change in valuation. Typical cap rates: 20–30%; well-established practices in desirable locations use lower rates (20–24%); newer or higher-risk practices use higher rates (26–30%).[7]
4. What Drives the Multiple: The Key Value Drivers
A practice with $400,000 EBITDA might be valued at 3.5× ($1.4M) or 5.5× ($2.2M) depending on its characteristics. The difference often comes down to risk, growth, and operational quality. These factors are the primary drivers that influence where a practice sits on the valuation spectrum:
Location & MSA. High-density growing MSAs command 5–10% higher multiples; rural or declining-population markets see 10–15% discounts. Urban practices in major metros are more attractive to DSO platforms because they support regional clustering.
Specialty Mix. General practices trade at 3.5–5.5× EBITDA; specialty practices (orthodontics, periodontics, oral surgery, pediatrics) command 1–2 multiple premiums, often reaching 5–7×.[12] Each additional revenue stream (implants, clear aligners, milled restorations, sedation) adds 0.2–0.5 to the multiple.[13]
Collections Growth Trend. 10%+ annual growth → 0.5–1.0 multiple premium; declining practices see 20–30% valuation discounts due to perceived risk.
Provider Mix. Solo practices (owner-dependent): 3.5–4.5×. One associate producing 20–30% of revenue: 4.5–5.5×. Associate producing 40%+: 5.0–6.5×.[13] An established associate is worth a 0.5–1.5 multiple premium because it de-risks the transition.
Recall & Maintenance Mix. Practices with strong recurring recall and maintenance revenue (40%+ of collections) typically command a 0.3–0.5 multiple premium because the revenue is high-margin and survives the ownership transition. Practices where recurring recall sits below 25% of revenue may see a 0.3–0.5 discount in models where recall is expected to anchor patient retention. For procedurally-driven practices, this metric is treated differently — buyers focus on procedure-mix stability, referral network strength, and case-acceptance trends instead.
Payor Mix. FFS practices average 1.3× gross revenue; heavily PPO-discounted average 0.9×.[2] 60%+ FFS → 0.3–0.7 multiple premium over 60%+ PPO. Heavy Medicaid (40%+) typically reduces multiples by 0.3–0.7. FFS margins 40%+; PPO margins 25–30%.[12]
Real Estate Ownership. Owning the building adds property value to the business valuation and normalizes rent expense to fair market. Above-market rent costs buyers — a $95K annual excess at an 8× multiple costs $760K in enterprise value.[14] Building ownership can add $200K–$800K to valuation.
Equipment Age & Technology. Modern equipment and digital workflows (digital imaging, CAD/CAM, intraoral scanners, practice management software) → 0.3–0.7 multiple premium. Outdated equipment (film X-rays, 15+ year old chairs) → 0.3–0.5 discount due to buyer capex requirements.
Staff Retention & Culture. 80%+ retention over 3+ years → lower perceived transition risk. High turnover → 0.2–0.4 multiple discount.
Patient Retention & Loyalty. 85%+ annual retention is stable; 70% or lower raises concerns. Active patient records are worth $200–$300 each in 2026.[5]
Operatory Count & Capacity. 5+ operatories with room to add capacity → 0.2–0.5 multiple premium. 90%+ utilization = constrained growth → buyer must invest in expansion.
Digital Integration & Automation. Paperless workflows, practice management software, patient portals, e-recall → 0.2–0.5 multiple premium. Outdated or fragmented systems → 0.3–0.7 discount in 2026.[13]
5. Buyer Types and How They Value Differently
The buyer type profoundly affects the valuation methodology and multiple paid. Understanding buyer motivations helps you either select the right buyer or pressure-test a valuation you’ve received.
Individual Dentist Buyer
Typically uses SDE multiples (1.8–2.6× SDE for general dentistry, with 2.2× as the median). Prioritizes owner cash flow rather than growth; willing to pay for a stable, profitable income stream. Payment is typically 100% at closing, though seller financing is common (10–30% of purchase price over 3–5 years). Typical valuation range: $400K–$1.5M for general dentistry, higher for specialty practices.
Group Practice or Multi-Location Buyer
Uses EBITDA multiples (4×–6× for add-ons; 6×–8× for platform transactions). Focused on integration and operational leverage. Payment is often 70–85% at closing with 15–30% in earnout based on post-acquisition performance. Typical valuation range: $1.5M–$8M.
DSO (Dental Service Organization) / Strategic Buyer
Uses EBITDA multiples (4–8× for add-ons; 8–12× for platform acquisitions). Highly motivated by EBITDA scale, profitability, and regional clustering fit. Payment typically 60–70% cash at closing, 20–30% escrowed (1–2 years), 10–15% earnout (2–3 years) tied to EBITDA and patient retention targets. Equity roll-over common (10–20% stake). Typical valuation range: $1M–$15M; platform acquisitions reach $50M+.
Private Equity Platform / Multi-DSO Buyer
Uses EBITDA multiples with explicit multiple expansion thesis (acquire at 6×, exit at 8–10× after 5 years). Payment similar to DSO (60–70% cash, 20–30% escrowed, 10–15% earnout) with significant equity rollover (10–30%). Typical valuation range: $2M–$100M+.
How Earnout & Equity Rollover Affect Headline Valuations
A common point of confusion: DSO offers often cite a headline valuation that includes earnout and equity rollover, but the cash value at closing is much lower.
Example. A practice with $500K EBITDA receives a “$3.5M valuation” DSO offer at 7× EBITDA. Structure: Day 1 cash $2.1M (60%); escrowed $700K (20%) released if retention targets met; earnout $525K (15%) paid if EBITDA grows 8%+ annually; equity rollover $175K (5%). The seller receives $2.1M in hand and another $700K if targets are met — a realistic near-term value of $2.8M (80% of headline). An individual dentist offering $2.0M all-cash at closing may be economically equivalent or superior depending on risk tolerance.
6. Common Normalizations and Add-Backs
Valuation begins with the practice’s actual reported profit but requires adjustments to show what a buyer would truly earn. These adjustments — called normalizations or add-backs — often add $50K–$300K to calculated EBITDA or SDE, fundamentally shifting the valuation.
Owner Compensation Normalization (The Biggest Add-Back)
The fundamental question: what would the buyer pay a replacement doctor to perform the clinical and management work you currently do? Replacement doctor salaries range from $220K (rural, newer associates) to $300K+ (major metros, specialists). The gap between your actual compensation and market rate is added back to EBITDA. This add-back is often $30K–$80K and materially increases valuation.[3]
One-Time Expenses
Events that won’t recur under new ownership: roof repair, major equipment replacement, legal fees for a settlement, facility renovation, extraordinary supply costs. Example: a $40K roof repair is added back because a buyer won’t face this expense again soon.
Personal Expenses Run Through the Business
Items that reduce taxable income but a buyer won’t continue: personal vehicle expenses, owner country club membership ($5K–$15K), health club membership, above-market family-member salaries, owner spouse paid full-time for part-time work, owner conference travel. Example: $20K vehicle + $5K country club + $8K spouse above-market salary = $33K add-back.
Family Compensation Above Market
If you employ a spouse, child, or parent at a salary above what an unrelated third party would receive for the same work, the excess is an add-back. Example: spouse works 20 hrs/week at $60K; market rate for full-time front desk is $35K → $25K add-back.
Real Estate Rent Normalization
If you own the building in a separate LLC and charge the practice above or below market rent, the difference is normalized. Above-market: EBITDA reduced. Below-market: EBITDA increased (buyer will have to pay fair market to whoever owns the building).
Related-Party Vendor Contracts
Equipment service, janitorial, or supply agreements with related parties at above-market prices are adjusted. Example: brother-in-law provides janitorial at $36K/year, market rate $18K → $18K add-back.
Worked Example — Full Normalization. Practice: $1.0M gross; $650K opex; $200K owner W-2; $150K net income. EBITDA: NI $150K + D&A $15K + interest $8K = $173K reported. Normalizations: owner comp adjustment −$50K; one-time roof +$30K; personal vehicle +$12K; country club + above-market spouse +$8K; below-market self-rent +$10K. Normalized EBITDA = $183K. At 4.5× → $823,500 valuation — $45K higher than unadjusted. In practice, total normalization commonly ranges $50K–$300K depending on owner-compensation and related-party practices.
7. Red Flags That Lower Valuations
Buyers conduct due diligence to identify issues that increase transition risk or reduce future profitability. The following red flags typically result in 15–35% valuation discounts:
Declining Collections. Down 5%+ YoY signals demand or operational problems; down 10%+ reduces multiples by 0.5–1.5×. Example: a $400K EBITDA practice at 4.5× = $1.8M; with declining collections at 3.0× = $1.2M (−$600K).
Heavy Single-Provider Concentration. Owner performing 90%+ of clinical work → 0.5–1.0× discount. A stable associate producing 30%+ of revenue is worth a $200K–$500K premium because it de-risks the transition.
Deferred Equipment Capex. Film X-rays, 20-year-old chairs, manual charting → buyer capex estimates of $150K–$400K typically deducted from valuation.
High PPO/Medicaid Mix Without Volume Offset. 60%+ PPO/Medicaid mix with stagnant collections → 0.3–0.7 multiple discount.
Outdated Clinical Workflow. Paper charts, manual scheduling, no digital imaging → 0.2–0.5 multiple reduction in 2026.
Bad Lease Terms. <5 years remaining, high escalators, no renewal options → $50K–$300K valuation reduction.
Concentrated Referral Sources. 30%+ of referrals from a single source → 0.3–0.7 discount.
8. Practical Takeaways — Action Items for Dentists
Whether you are planning to sell in 2–5 years, pressure-testing a current offer, or ensuring long-term practice health, these action items address the factors that directly increase valuation:
Before You Sell (24–36 Months)
Optimize owner compensation to market rate. A $50K shift in owner comp can add $225K–$400K to valuation (at 4.5–8× multiples).
Establish or expand an associate. An associate producing 20–30% of revenue over 18–24 months adds 0.5–1.0 to your multiple. Cost: $200K–$300K onboarding. Valuation increase: $300K–$800K+.
Modernize equipment & digital workflows. Digital imaging, cloud PM software, patient portal, modern chairs. Capex $150K–$400K; valuation increase $200K–$500K.
Document financial performance consistently. Clean, organized records for 3–5 years — tax returns, P&Ls, bank statements, aged receivables. Hire a CPA if needed.
Stabilize and document collections growth. Even modest growth (2–3% documented) supports a 0.2–0.3 multiple premium.
Normalize your P&L and identify all add-backs. Properly-normalized EBITDA commonly exceeds reported net income by $50K–$200K. Presenting a normalized P&L up front shows sophistication and reduces disputes.
Conduct a pre-sale practice valuation. 12–24 months before sale, hire a credentialed appraiser (CPA, CVA, business appraiser). Cost $2K–$5K. Benefit: you know your likely range, can identify gaps, and can negotiate from informed ground.
Audit lease terms and building ownership. Lease expiring within 2 years of sale should be renegotiated early. If you own the building, appraise it and verify rent matches fair market.
Build and document your patient list. Retention rates, active patient flags, treatment acceptance by provider. Active patient records are worth $200–$300 each in 2026.
When You Receive an Offer
Pressure-test the multiple and valuation method. Ask for supporting comparables. A 0.5 multiple difference often means $150K–$300K in valuation difference.
Understand earnout and escrowed payment structures. Calculate risk-adjusted NPV: e.g., $3.5M headline = $2.1M cash + $0.14M escrow-weighted + $0.105M earnout-weighted ≈ $2.35M expected (33% less than headline). Compare carefully to all-cash offers.
9. References
[1] Scott Leune, “Dental Practice Valuation: Why Values Differ by $500K,” accessed April 2026. scottleune.com/blog/dental-practice-valuation-identical-practices-differ/
[2] FOCUS Bankers, “Dental Practice EBITDA Multiples: 2026 Report,” accessed April 2026. focusbankers.com/dental-practice-ebitda/
[3] US Dental Practices, “Seller Discretionary Earnings: 7 Ways SDE Boosts Practice Value,” accessed April 2026. usdentalpractices.com/helpful-resources/seller-discretionary-earnings
[4] Professional Transition Strategies, “SDE vs EBITDA for Dental Practice Valuation Guide,” accessed April 2026. professionaltransition.com/sde-vs-ebitda-for-dental-practice-valuation/
[5] CBIZ, “Dental Practice Goodwill: How to Identify, Measure, and Value It,” accessed April 2026. cbiz.com/insights/article/dental-practice-goodwill-how-to-identify-measure-and-value-it/
[6] Dental Economics, “A Closer Look at Common Practice Valuation Approaches: Asset-Based Approach,” accessed April 2026. dentaleconomics.com/money/article/55090244/a-closer-look-at-common-practice-valuation-approaches-asset-based-approach
[7] Professional Transition Strategies, “Dental Practice Cap Rate: Definition & Calculator,” accessed April 2026. professionaltransition.com/dental-practice-cap-rate-explained/
[8] Dental Economics, “Practice Valuation: Using Discounted Cash Flow Methodology,” accessed April 2026. dentaleconomics.com/money/article/16391169/practice-valuation-using-discounted-cash-flow-methodology
[9] Peak Business Valuation, “Valuation Multiples for a Dental Practice,” accessed April 2026. peakbusinessvaluation.com/valuation-multiples-for-a-dental-practice/
[10] Dental Practice Connect, “Why Rules of Thumb Work in Dental Valuations,” accessed April 2026. dentalpracticeconnect.com/case-studies/Why_Rules_of_Thumb_Work_in_Dental_Valuation
[11] BizBuySell, “Dental Practice Business Valuation Multiples & Financial Benchmarks,” accessed April 2026. bizbuysell.com/learning-center/valuation-benchmarks/dental-practice/
[12] Curved Dental, “Average Dental Practice Revenue by Specialty: How Do You Compare?” accessed April 2026. curvedental.com/dental-blog/average-dental-practice-revenue
[13] Scott Leune, “How to Sell a Dental Practice: The Complete 24-Month Guide,” accessed April 2026. scottleune.com/blog/how-to-sell-a-dental-practice-complete-guide/
[14] Menlo Transitions, “Does Building Ownership Affect Your Dental Practice’s Value?” accessed April 2026. menlotransitions.com/does-building-ownership-affect-practice-value/
This appendix is intended as educational material for selling and buying dentists and their advisors. It is not a substitute for professional valuation, accounting, or legal advice. All valuations should be performed by credentialed professionals (CPAs, CVAs, accredited business appraisers) and reviewed by legal counsel before entering into any transaction.
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