PFM Dental have been valuing dental practices since 1990 and are one of the leading valuers across England, Scotland and Wales.
Welcome to
PFM Dental
Practice Valuations
At PFM Dental we undertake hundreds of dental practice valuations each year for various purposes all around the country. Regardless of whether you are selling, buying, creating a partnership or just require a valuation of your dental practice for your retirement planning, you can be rest assured that we can provide you with an accurate valuation of the dental practice.
Dental practices are valued based on a multiple of EBITDA (earnings before interest, tax, depreciation and amortisation). This is the profit of the practice, once relevant adjustments have been made, and there are two different financial models which should be calculated: principal led model and associate led model.
Due to the EBITDA being multiplied to determine the value, it is important to have a dental valuer with their finger on the pulse, who firstly knows what multiples the market is achieving but also how to calculate an accurate EBITDA, making the relevant adjustments. Getting this wrong can costs tens, if not hundreds, of thousands in lost value.
Detailed Report
Accurate valuations by our professional advisers takes the guess work out of the process. Our expert knowledge used for your specific practice.
Calculations Shown
A line by line breakdown of how the valuation is calculated. There is no estimating, we use exact figures for each and every practice.
Buyer Review
Based on our valuation, working out viability of different models, we can review which type of buyer your practice is most likely suited to.
Different Models
Our report includes calculations for both principal led and associate led models of your practice.
Enhancing Value
Following our in-depth review of your finances we can suggest improvements to enhance your EBITDA.
Detailed Breakdown
We provide a detailed breakdown of the value of goodwill vs equipment within the practice.
FAQs
Do you need to visit the practice for a valuation?
The majority of valuations are undertaken at the practice although we do offer remote options (postal, telephone and video conferencing).
We will get a good understanding of the practice, the property, staffing, financial information and accounting information and will also undertake an inventory of the equipment.
We will also discuss the requirement of the valuation as this will help us guide you with any additional information to help you along the way. A formal valuation report will be issued.
How do you make suggestions to enhance values?
As we will get a detailed look at how your practice works and the financial information, we can provide our recommendations to enhance the value of the practice.
We can determine any costs that are out of line with market averages and ways in which they can enhance the profitability of the practice; such as hygiene recharges, which have a multiplied effect from the extra profit that would generate the value.
Why PFM Dental?
We have been valuers and sales agents for dental practices for over 35 years, and are 100% dedicated to the dental profession. All of our dental practice valuers bring their experience and knowledge to each and every client, giving you a bespoke and professional valuation.
What does your valuation process include?
Our valuation process will generally includes a visit to the practice, although this is not essential should you wish this to be done desk-based. We will undertake a thorough analysis of your practice allowing us to provide you with an EBITDA (earnings before interest, tax, depreciation and amortisation) model of the practice both as a principal led and associate led. Making sure that relevant costs are removed and certain income is adjusted will make sure that we maximise the value for you.
How do you calculate a practice’s value?
Dental practices are mostly valued by calculating the ‘principal led’ and ‘associate led’ EBITDA (earnings before interest, tax, depreciation and amortisation) of your practice. The calculation will include a number of adjustments and are tailored to each individual practice. Whilst calculating an EBITDA, the likes of the location, type of practice and growth potential are all other factors that need to be considered. Our specialist valuers will advise accordingly.
How long does a valuation typically take?
A typical valuation meeting would generally take around an hour, although we can be in and out quicker if required. If you are considering a sale, you may wish to spend more time discussing the sale process and types of buyers. Once we have visited and have all of the required information, we aim to get the valuation report out to you within a week.
What information do I need to provide for a valuation?
We will send two forms for you to complete, providing us with the to-date income and staffing/associate information. We will then need your latest three years’ accounts (if available) and will discuss the background and other information with you at the meeting. We will run through the accounts with you and may have some further information that we need.
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