What is my dental practice worth? - Lily Head Dental Practice Sales
January 29, 2019 No Comments

What is my Dental Practice worth?

What are my options to exiting the business?

This is exactly the type of thing we discuss at our seminars for #Dentists.  Please tap on this link to see the current schedule of events.

At Lily Head Dental Practice Sales we understand this often is the corner stone of what do next when considering exiting your Dental Practice.

When considering how and when to leave the business you will ideally be in a position to know what the ‘gap’ is. The ‘gap’ is the difference between what you want in your retirement pot and what you have.  Once you know the gap you can start to position your business to fill that financial gap in your retirement planning.

So here is the short version of what the market will stand.

Remember, a valuation is only an estimate of what the market will pay.  A broker that offers you the highest valuation will not necessarily the one who gets you the best price.

Providing a high valuation is done at the stroke of a pen.

Take your most recent accounts and look for your EBITDA (not to be confused with net profit).

EBITDA is your profit after all costs (including the principal’s salary) to the business have been accounted for.

  • London & Home Counties – 5-7.5 x EBITDA
  • Major Conurbations – 4-7 x EBITDA
  • More Rural Locations 4-5.5 x EBITDA
  • NHS 110% -220% TCV

The more robust the EBITDA the more buyers are willing to pay.

We represent a client right now where we have agreed a deal of 9 x EBITDA on an exceptional practice.

Please Contact Us if you would like an accurate and up to date valuation of your business and a market price to match.