How to Maximize the Value of Your Dental Practice

Selling your dental practice is a once-in-a-lifetime opportunity to turn years of hard work into long-term financial security. And understanding how your practice is valued - and how to improve that value - can make all the difference when it comes time to sell.

What is EBITDA and Why Does It Matter?

EBITDA reflects the cash flow your practice generates and serves as a key indicator of its financial health. It’s the figure DSOs use to assess the value of your practice. Boosting your EBITDA can significantly increase your practice's sale price.

When preparing your practice for sale, it’s just as important to avoid common mistakes that can hurt your EBITDA.

Here are a few things to watch out for:

• Equipment Upgrades: While upgrading your equipment may seem like a smart move, it can actually reduce your EBITDA by adding to your expenses.
• Out of Control Overhead: Regularly track your overhead and make small adjustments, such as renegotiating leases or adjusting supply orders, to reduce costs and improve your bottom line.

Take Control of Your Practice’s Value

The value of your dental practice is in your hands. By focusing on boosting your EBITDA and avoiding costly mistakes, you can significantly increase the financial reward when it comes time to sell.

If you're unsure where to start, we can help. Check out the FDP Profitability Calculator to understand your current practice valuation and discover steps to increase your profitability.

Let us guide you toward a secure financial future.