Practice valuation: an analytical approach

Purchasing a dental practice is difficult. To help make this decision process more manageable, practitioners, practice management consultants, and practice appraisers often use standard valuation methodologies. Although useful, many of these models are simplistic, arbitrary, and dependent on criteria that are often susceptible to substantial subjectivity. Therefore, practice valuation results are often disputed. The capitalization of income method removes much of the subjectivity often associated with practice valuation and provides a more reliable assessment of the value of a practice.