What is my Practice Worth?

Author: Darren Sardoff, President and Chief Investment Officer

Your Practice Could Be Worth More Than You Think

If you’re like most dentists, you may have a ballpark figure in your head for what your practice might be worth. Often times when we meet dentists for the first time, they think their practice is worth .75-1 times their collections which is certainly possible if selling to another dentist in a private sale.

But in today’s market, many owners are surprised — sometimes shocked — to learn that buyers, namely DSO buyers are willing to pay significantly more than expected.

Why the Gap?

▪ The biggest reason is that DSOs and private equity- backed buyers don’t value practices the same way individual buyers do.

▪ EBITDA multiples: Corporate buyers base their offers on cash flow (EBITDA), not just collections.

▪ Strategic fit: If your practice fills a geographic gap or complements a buyer’s specialty mix, they may pay a premium.

▪ Operational efficiencies: Buyers see ways to reduce costs or increase production after purchase, making your practice worth more to them than it appears on paper.

Hidden Value Drivers

Many dentists underestimate:

▪ Strong hygiene programs (predictable recurring revenue)

▪ Long-standing staff (reduces turnover risk)

▪ Prime location (especially in competitive urban/suburban markets)

▪ Specialty procedures kept in-house (boosts margins)

What About Now?

While valuations are down from the go-go days of zero interest rates, free money and overpaying DSOs, competition among DSOs has meant that valuations are still healthy in most markets, the same practice that might have sold for 5× EBITDA last year ago could now command 6–7× — sometimes more. Waiting too long could mean missing the strength of this cycle.

A Reality Check Worth Taking

The only way to know your practice’s true value in today’s market is to get a professional, confidential valuation from someone who works with these buyers every day. You’ve spent a career building something extraordinary. Before assuming you know its worth, make sure the market doesn’t see it even higher. The gap could be the difference between a comfortable retirement and a transformative one.

About King’s Ransom Group

King’s Ransom Group (“KRG”) is a private investment firm and M&A advisor, working with companies across the business services, healthcare, and marketing industries. KRG’s healthcare group advises dental practices nationwide in all facets of their sales process to help practices find the best and right investors and partners. KRG’s team has decades of experience founding and operating businesses across various sectors as well as financial expertise, having worked at some of the largest firms on Wall Street. For more information, please visit: www.kingsransomgroup.com.

About DentyVal

Thinking of selling your practice, or perhaps you've already received an offer? DentyVal’s innovative technology gives you a confidential and unbiased estimate of its value within minutes. Developed by the dental industry's most trusted financial experts, DentyVal gives you the confidence that you're getting the highest value for your practice.

DentyVal is 100% confidential, and the information you provide is solely used for generating your valuation. You'll also have the opportunity to have a no-obligation conversation with one of our dental market experts to discuss your valuation and/or learn how we can help you get the best sale deal possible.

Whether you're interested in selling now or in the future, it's not too early to be well-informed! Try DentyVal now!