Dental Practice Sales

When valuing a dental practice, we typically use, a profitability measure called EBITDA. This number is derived by analysing 3 key areas;
Revenue: We consider run-rate private, NHS, and membership plan income, reflecting any significant increases (e.g. from the addition of a new surgery).
Variable costs: These encompass expenses related to revenue delivery, such as materials, labs, implant costs and clinician fees. We construct clinician fees from scratch, ensuring the seller is remunerated as an associate and all recharge methodologies are applied.
Fixed costs: We factor in liabilities inherited by the buyer, including rent and staff costs. Personal and non-recurring costs are removed for accuracy.

There's no one-size-fits-all answer to this question. Dental practices can sell for anywhere from £200,000 to several million pounds. The value depends on various factors such as location, size, patient demographics, and the practice's financial performance. Market trends, demand from buyers, and economic factors also play a significant role in determining the price.

Planning is everything. So many people leave selling their practice too late which drastically limits their options. Either they must put back their retirement plans or sell the practice for less than its full potential. If you are looking to sell in the next 3 years, you should act now. At Mayfield, we believe there is always a good opportunity to sell. While there may not be a "perfect time," we ensure you're prepared and ready to take advantage of the best opportunities whenever they arise.

For practices with a turnover of £1million or more, a healthy typically falls within the range of 15% to 20% of revenue. However, it's important to consider that this is just a general benchmark, and individual circumstances may vary. Factors like sales mix, clinician remuneration, rent, staff costs, and advertising spend can all influence the EBITDA percentage.