Whether you’re planning to transition in 2 years or 20, you need to know how buyers, especially DSOs and private equity groups, are evaluating practices right now.
Dental Success Network recently hosted a webinar featuring Dr. Mark Costes and Kyle Francis of Professional Transition Strategies titled “Mastering Your Practice Valuation: What Today’s Buyers Actually Look For.” If you missed it, here’s what you really need to know.
Key Takeaways
Revenue does not equal value: A million-dollar practice with 115 percent overhead isn’t worth nearly as much as one with a 50 percent overhead, even if the gross revenue is the same.
DSOs are getting more sophisticated: Old-school valuations based solely on collections are disappearing fast. Buyers now want profitability, scalability, and operational excellence.
SDE and EBITDA matter: Knowing your Seller’s Discretionary Earnings and EBITDA is no longer optional. It’s the baseline for serious valuation discussions.
Real estate isn’t always a dealbreaker: Most DSOs don’t want to buy your building, but it can be a major asset if you structure it right.
Doctor-to-doctor sales still exist: However, practices that are too small or too optimized can fall into a valuation gray zone.
Consolidation is accelerating: Whether we’re at 35 percent or 50 percent, this wave is far from over. You need to be ready before your options narrow.
Action Steps You Can Take Now
Get a free practice valuation: DSN members can access Kyle’s team for free, no-strings-attached valuations.
Assess your practice’s buyability: Do you have 6 or more ops? Multiple providers? Solid hygiene numbers? If not, start building now.
Understand your exit options: There’s more than one path. Whether it’s a minority sale, a JV, or doctor-to-doctor, education is power.
Avoid the plateau trap: If your practice is too optimized, buyers may question growth potential.
This is What DSN Was Built For
Inside Dental Success Network, we’ve created a community and resource hub for growth-focused dentists whether you’re buying, scaling, or preparing for a high-value exit.
As a member, you get access to:
- 200 plus hours of online CE including content on valuations, transitions, and scaling
- Live webinars and webinar recordings with CE
- Over 750 plug-and-play documents and templates
- Up savings on supplies and lab costs through exclusive vendor discounts
- A free Digital Operations Manual to systemize your practice and increase its value
If you’re thinking of transitioning now or in the future, DSN is your unfair advantage. Join now to get a free 7-day trial and access to the strategies and support you need to maximize your valuation and choose your transition path on your terms.
For your success,
The DSN Team
