Resource Library: Financials

Guidance on evaluating, managing, and improving your practice’s financial health.

  • Increasing Your Bottom Line and Practice Value
    The two most important factors in determining practice value are Current Annual Revenue and Net Cash Flow.  Therefore, increasing productivity and improving the bottom line of your practice will not only increase your personal income but also enhance the value and marketability of your practice when the time comes to sell.  Here are a few…
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  • Improving Profitability to Maximize Practice Value
    The most important factor influencing practice value is Profitability (also known as Net Cash Flow). Therefore, increasing productivity and improving the bottom line of your practice will not only increase your personal income but also enhance the value and marketability of your practice when the time comes to sell. Here are a few strategies that…
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  • FAQs on COVID’s Effect on Practice Values and Sales
    Dentists are now fully back to work with some restrictions due to COVID-19.  The COVID shutdown, the new requirements, and other changes have caused dentists to have a lot of questions on their minds. The questions range from Human Resources related questions to questions on selling their dental practice. While we are not HR experts,…
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  • The Importance of Sending Updated Practice Information
    Every January, Practice Impact starts making our yearly calls to request updated information from our current selling doctors. Although we make these calls throughout the year at various times, especially just after Tax Day to get updated tax returns for all of our practices, the year-end information we request is usually the most substantial. If…
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  • How is the closure of dental practices due to COVID-19 affecting practice values?  
    Should I sell my practice now or wait?  These are big questions. These are important questions. These are questions we are being asked a lot lately, as you can imagine. While there is no definitive answer, we have insights that will be useful to you if you are contemplating a sale of your practice currently,…
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  • The Crucial Role of Office Lease Negotiations in Dental Practice Sales
    When dental professionals consider transitioning their practice, many aim to maximize value and ensure a seamless transition for their patients and staff. However, we see many of our clients overlook the crucial role that lease terms play in determining value and facilitating a smooth transition. For instance, a long-term lease with favorable rent and renewal…
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  • Why is Wall Street Interested in Dental Practices?
    “Corporate dentistry” has been a hot topic in the industry recently. Corporations, private investors, venture capital groups, and the like have seemed to develop a strong appetite for dental practices, which begs the question, “Why is Wall Street interested in dental practices?” Dental service organizations (“DSOs”), or “corporate dentistry” as they are sometimes called, are…
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  • Why Buying and Merging Another Practice Into an Existing Practice Makes Sense
    Growing a dental practice can be one of the most challenging things in practice ownership.  Advertising for new patients can be hit-and-miss and very expensive.  You can spend thousands of dollars on a new website, SEO optimization, postcards, etc., and not get hardly any results.  That’s why one of our favorite strategies to grow a…
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  • Understanding Practice Values
    It’s difficult to understand practice values in a specific market when comparing national averages. Collections, net income, and EBITDA are important but not the only valuable considerations when understanding the fair market value of a practice. Here is a list of factors taken into consideration when analyzing a practice in comparison with other opportunities in…
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  • Thinking About Selling your Dental Practice: What to Expect in Net After Taxes
    If you are thinking about selling your dental practice, one of the considerations is the “timing.” In other words, when do I place my dental practice on the market? When my clients ask me this question, I ask the client, “When would you like the sale to take place?” Most respond, “yesterday.” But, “Seriously,” I…
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