Do you need to solicit a formal valuation for your practice? Or can you leverage other resources to get a general idea of its appropriate list price?

On this episode of the Dental Practice Sale podcast, host Wes Read explains why the profit and loss statement is the primary document for determining the value of a practice.

Wes walks us through the anatomy of a P&L and describes how to calculate the true cashflow profit of a dental practice as well as its approximate list price.

Listen in for insight on using Practice Orbit’s price estimator tool and learn what to do if your practice is worth more than a bank is willing to lend.

Topics Covered

The success of the launch of our Practice Orbit dental practice marketplace

How Practice Orbit serves as the MLS for dental practices

What makes Practice Orbit a technology company rather than a broker

How Practice Orbit is leveraging agile development to improve over time

When you need to get a formal valuation for your practice (and when you don’t)

Why the P&L is the primary document for determining the value of a practice

Wes’ insight into the anatomy of a P&L for a dental practice

Operating income + add-backs = true cashflow profit of a practice

How Practice Orbit’s pricing tool estimates the value of a dental practice

How the cashflow of a dental practice translates to list price

What to do if your practice is worth more than a bank is willing to lend

How DSOs determine the value of a practice differently than private sales

Connect with Wes Read

Practice Orbit

Email wes@practiceorbit.com

Practice CFO

Practice CFO on Instagram

Practice CFO on Facebook

Practice CFO on YouTube

Resources

Practice Orbit Price Estimator