Dental Practice Appraisal FAQs

A dental practice appraisal can benefit you now and in the future. Our team sat down and answered some of the most frequently asked questions about practice appraisals.

Why should I request a dental practice appraisal?

Dental practice appraisals are useful when determining a practice sales price, establishing a partnership, navigating a divorce, estate planning, or setting a benchmark for practice performance. By knowing how much your practice is worth, you can make more sound business decisions throughout your career. The team at Menlo Dental Transitions recommends receiving an updated appraisal every two years.

What is the practice appraisal process?

First, the appraiser will collect financial and practice information from you. Then they will analyze the data and start building the report. The appraiser may also request to tour your facility and discuss additional factors that make your practice unique. They will conduct additional analyses based on the information gathered before sending the final product over to you.

At Menlo Dental Transitions, we offer a 30-minute phone consultation to discuss the report in detail and answer any questions that you may have. The entire process typically takes two to four weeks after all materials are provided.

What materials do I need to provide?

When you engage a practice appraiser, you will be asked to provide a variety of information:

• Balance sheets
• Profit and loss statements
• Tax returns
• Collection reports
• Production reports
• Equipment list

How is my practice’s value determined?

The value of your practice is based on a variety of factors. At Menlo Dental Transitions, we use proprietary lists of recent transactions of practices with similar characteristics, revenues, profits, insurances accepted, employees, equipment and locations. We put equal weight on your revenue and total business profit over the last three years.

What is included in the valuation report?

The final deliverable will be a detailed report outlining the value of your practice. Menlo Dental Transitions’ reports are 50 to 60 pages in length. Our reports detail the following:

• Practice history
• Practice details (photos, schedules, employees, equipment, etc.)
• Local market and economic analyses
• Explanation of our valuation methods
• Figures and exhibits from our analyses
• Conclusion of your practice value

Why should I use Menlo to complete my dental practice appraisal?

Menlo Dental Transitions has two dental-specialized Certified Valuation Analysts on the team. Our analysts bring a level of sophistication, depth of knowledge and consistency to our appraisal process. Our team also transitions between 40 to 50 practices each year, which provides our analysts with tangible knowledge of the industry and current market trends.

Menlo Dental Transitions specializes in appraisals for dental practices of all sizes, specialties and locations. We also offer reduced rates for updated appraisals completed every two years. Request a dental practice appraisal today!