For Practice Owners – Valuation Factor: Profit. Profit matters more than production for the purpose of valuation. A practice can have high production undercut by high overhead or poor collections, resulting in lower profit and practice value. However, when production and profit are both increasing, this is a very healthy sign for your practice. Tracking for three years is important because it shows a trend rather than a snapshot.

Whitepaper Wednesday: Check out Dr. Levin’s whitepaper, “Dentist as CEO – Finance & Overhead Analysis,” by clicking here.