As a busy practice owner, you probably don’t have the time to step back and review your practice.
However, in our experience, taking the time to look at what your practice is worth now and finding out what it could be worth further down the line if you make some changes is time well spent.
A simple change like offering additional treatments in-house could have a huge impact on your practice value in the future and could see you end up much better off when the time comes to sell.
Where possible, our advice is to always deliver treatments (such as orthodontics, endodontics, periodontics or implants etc) in-house at your practice.
For example, let’s take a quick look at implants and how this could work in your favour if you were to deliver the treatments in-house.
If you refer out two treatments per month at £2,500 per implant (the average across UK is £2,415), that works out at £5,000 per month (or £60,000 per year).
If this generates a 30% profit that would be an additional £18,000 a year in your accounts.
For any valuation of a dental practice, we use a model that is based on a multiple of profit. So, if we use the figures in the example above, a profit of £18,000 x a multiple of 5, equates to £90,000 added to the goodwill value of your practice!
This is just one example, but if you’re keen to increase your practice value, think about your own practice. What services are you currently referring elsewhere? Could you deliver these in-house and be better off when the time comes to sell?
If you’d like to find out more about our Impact Valuations and get an up-to-date figure for what your practice is worth today and what it could be worth in the future if you commit to changes, then get in touch.
