Have you ever wondered what the value of your dental practice is? Whether you are planning to sell or expand, the value of your practice will be based on several factors that include:
- Staff-related expenses
- Annual revenue collected
- Annual amount spent on lab fees and services
- Annual rent
- Other key financial information
Most dental practices can stand to boost their value by increasing patient numbers, lowering annual expenses, or finding ways to be more efficient. If you are interested in learning more about ways that you can boost your practice’s value, the consultants and trainers of Dental Practice Enhancement can help you target key areas of your business for improvement.
You’ve worked hard to build your business into the respected dental practice that it is today. Shouldn’t the actual value of your practice reflect that hard work? Read on to learn tips on how to boost the value of your business.
How are dental practices valuated?
The two most common methods for valuating a dental practice are income-based and market-based. For income-based valuations, income is defined as pre-tax cash flow. The income is then divided by a cap rate to determine the fair market value of the dental practice. Some methods use the average of 10 years of net income to calculate the value of the dental practice.
The market-based approach considers the realities of the current market. The approach examines collections rather than pre-tax cash flow. Both methods often add a value known as “goodwill,” which considers intangible assets, such as the potential for growth and reputation.
How can a dental consultant increase the value of my dental practice?
Our founder Tina Brown has over 30 years of experience in the dental practice management industry. To boost your dental practice’s value, the team of Dental Practice Enhancement can improve efficiency in areas such as:
- Team Building.
- Billing Collection Training
- Technology Integration
Of course, one of the best ways to quickly improve the value of your practice is to boost the number of patients under your roster. The consultants of Dental Practice Enhancement have decades of experience helping dentists and office managers boost patient numbers.
Once you have partnered with our team of experts, a careful examination of your dental practice’s SEO rankings, social media options, community engagement, patient referral programs, and other key areas of your business will be looked at before a customized plan is developed to boost your patient numbers. We can also offer tips to attract patients who have missed their scheduled preventative or restorative treatments.
Other tips for boosting the value of your practice include:
- Renovating your space if it appears outdated
- Replacing outdated dental equipment with new technologies
- Keeping your Medicare and Medicaid patient base below 10 percent
- Working to attract younger patients
Try looking at your dental practice with fresh eyes. You may be used to the appearance of your business, but how does it look in the eyes of someone else? Dusty fake plants and faded window drapes may be less than appealing to a new patient. Small steps that brighten up your dental practice can lead to knew patients who increase the value of your company.
Schedule Your Initial Consultation Today
You’ve worked hard to grow your business. With straightforward advice, the team of Dental Practice Enhancement can help your dental practice reach the valuation that reflects your years of delivering quality dentistry. Call Dental Practice Enhancement at (833) 373-3678 extension 1 today. One of our team members would love to answer any questions and set you up for a FREE consultation.