Establishing the Value of Your Dental Practice Before Selling
Before you negotiate with a buyer, accept an offer or begin looking for someone to purchase your dental practice, you need to establish its fair market value.
A professional dental practice appraisal goes far beyond financial statements and annual revenues. It examines the equipment, leasehold improvements, patient base, goodwill, financial performance and other factors that influence what a buyer may reasonably be prepared to pay.
At Meditax, we coordinate a comprehensive appraisal involving specialists who assess the different components of your practice.
The result is a detailed appraisal report that helps establish your asking price, identify factors affecting buyer interest and prepare for the financing and negotiations involved in a sale.
The appraisal is the diagnosis before the sale.
When Should You Have Your Dental Practice Evaluated?
Whether you already have a buyer or are only beginning to consider selling, understanding your practice's value is an essential first step.
I Already Have a Buyer
Perhaps an associate wants to purchase your practice, a colleague has expressed interest or you've been approached directly by a prospective purchaser.
Before negotiating the price, you need an independent, professional assessment of what your practice is worth.
An appraisal provides a documented basis for the asking price, supports negotiations and is required for the purchaser's financing.
Having a buyer doesn't mean you already know the value of your practice.
I'm Thinking About Selling
You may be considering retirement in the next few years without having decided exactly when to sell.
An appraisal helps you understand your practice's current value and whether it supports your financial objectives.
It can also identify issues worth addressing before you begin the selling process.
You don't need a buyer or a confirmed selling date to establish your practice's value.
I'm Ready to Find a Buyer
If you're preparing to introduce your practice to potential purchasers, the appraisal should generally come first.
Serious buyers want to understand the financial performance, assets and asking price before deciding whether to pursue an opportunity.
Their accountants and financial advisers also need reliable information to assess a potential acquisition.
The appraisal is where a properly prepared sale begins.
Your Dental Practice Cannot Be Valued Like Any Other Business.
A dental practice may generate substantial revenues and still be worth considerably less than its owner expects.
Why? Because a buyer isn't simply purchasing a stream of revenue.
They're acquiring equipment, a patient base, an established operation and a physical space that may require additional investment. They're also considering whether the practice fits their professional objectives and how easily its operations can continue after the sale.
The age of the dental chairs, the condition of the premises, the type of procedures performed and the composition of the patient base can all influence the value of the business.
A multiple of revenues, net income or EBITDA may be a starting point.
It is not a complete dental practice valuation.
Why Your Accountant Cannot Simply Tell You What Your Practice Is Worth
Preparing financial statements and valuing dental practices are different areas of expertise.
An accountant who doesn't regularly work on dental practice valuations and transactions may not have the specialized market knowledge required to provide a reliable opinion of value.
An accurate appraisal requires an understanding of how dental practices operate, what buyers are looking for, which characteristics affect marketability and what financial institutions expect when financing an acquisition.
An accountant with extensive dental practice valuation experience may have that expertise. But familiarity with your financial statements, on its own, is not enough.
Knowing what your practice earns is not the same as knowing what a buyer will reasonably pay for it.
Book Value vs. Fair Market Value
Book value generally reflects recorded assets minus liabilities, based on accounting figures that may include historical costs and depreciation.
It doesn't necessarily capture the market value of the equipment, patient base, goodwill or the practice's earning potential.
Fair market value considers the practice as an operating business, including its tangible and intangible assets, financial performance and the conditions influencing a potential sale.
It represents an assessment of what informed, willing parties might agree to under appropriate market conditions.
Your practice's book value and its fair market value can be very different.
What Goes Into a Dental Practice Evaluation?
A comprehensive appraisal examines the two kinds of assets that make up your dental practice: the tangible assets you can see and count, and the goodwill built over years of practice.
Dental chairs, delivery systems, sterilization equipment, imaging systems and other clinical equipment.
Reception furniture, administrative equipment, office furnishings and other non-clinical assets.
Computers, servers, networking equipment and related technology infrastructure.
Dental supplies and other inventory included in the transaction.
The improvements made to a leased commercial space to accommodate the dental practice: plumbing, electrical installations, built-in cabinetry, treatment-room construction, ventilation and other permanent improvements.
Goodwill is the value of everything your practice has built that isn't physical. It doesn't appear on your financial statements.
It is established partly from your financial results and partly from subjective factors, all considered together:
Combined, they are what a buyer pays for beyond the equipment: a practice that patients trust and keep coming back to.
The value of a dental practice is not simply the sum of its equipment and patient files.
Two Practices With Similar Revenues Can Have Very Different Market Values.
Some characteristics directly influence the price a buyer may be prepared to pay.
Others affect the number of potential purchasers, the type of buyer the practice will attract or how long it may take to sell.
A comprehensive appraisal helps identify both.
01Number of Operatories
A practice with fewer than four operatories may appeal to a narrower group of purchasers than a larger clinic.
Its size can influence growth potential, staffing arrangements and the buyer's intended operating model.
02Age of Equipment
Older dental chairs, imaging systems and other clinical equipment may require replacement or additional investment.
A purchaser will consider these anticipated costs when assessing the acquisition.
03Age and Condition of Renovations
A practice that hasn't been renovated for many years may require substantial upgrades.
The condition and functionality of treatment rooms, cabinetry, plumbing and electrical installations can affect both value and buyer interest.
04Digital vs. Analogue Operations
Some practices have fully integrated digital systems. Others still use analogue radiography, paper records or older technology.
The absence of digital X-rays or imaging equipment in individual treatment rooms may affect a buyer's assessment of the investment required after closing.
05Hygiene Department and Staffing
A practice where the dentist performs much of the hygiene work may appeal to a different buyer profile than one with an established team of dental hygienists.
Many purchasers value the continuity of experienced hygienists and a stable, long-standing team.
06Type of Procedures Performed
Revenue composition matters.
A practice generating a significant proportion of its revenue from procedures closely associated with the selling dentist's individual expertise may present different continuity considerations than one with a broader, more transferable service mix.
07Patient Demographics and Language
The composition of the patient base can influence which purchasers are best suited to the practice.
For example, a clinic serving a significant number of patients who prefer care in a particular language may be especially attractive to dentists who can continue providing services in that language.
08Revenue Sources and Patient Mix
A practice with a significant proportion of revenues associated with RAMQ-covered care or particular patient programs, including services provided to refugees, may require closer analysis of its revenue composition and continuity.
09Location, Commercial Lease and Growth Potential
Accessibility, surrounding demographics, lease duration, renewal options, restrictions and opportunities for expansion can all influence a practice's marketability.
These characteristics are not inherently positive or negative. Their significance depends on the practice and the prospective purchaser.
What These Factors Mean for Your Sale
A practice may be profitable and well established but appeal to a relatively small group of purchasers.
In some circumstances, finding a suitable buyer may take longer.
Not every characteristic reduces the value of your practice. Some change who the right buyer is.
Understanding that difference before going to market is essential.
The Appraisal Doesn't Simply Establish a Price.It Helps Determine How to Sell.
Before deciding how to sell a dental practice, we need to understand exactly what we're selling.
The appraisal does more than establish a value. The non-financial information it contains—the type of work performed, the equipment, the condition of the premises, the patient base and the team—helps us determine the profile of the ideal buyer for your practice.
That profile shapes everything that follows: who we look for in our network and database, how we approach them and how we present your practice. It also helps us identify its strongest selling points and what could be optimized before going to market.
Without this information, setting an asking price becomes guesswork. So does deciding which prospective purchasers to approach.
For sellers using Meditax's private dental practice brokerage service, the appraisal helps inform how the practice is positioned and which buyers should be considered.
First, understand the practice. Then determine the right strategy for selling it.
Some practices perform a significant amount of specialized work. Not every buyer has the experience or the desire to perform those types of services, particularly a younger dentist acquiring a first practice.
Some buyers are looking for a practice focused on general and restorative dentistry. Others are specifically interested in a practice that performs implants, extractions or orthodontics in-house.
Others are attracted to a practice that refers those services externally, so they can bring them in-house themselves.
Some buyers want a practice where they can update the equipment and the decor. Others want a practice that is completely turnkey, where they won't even repaint the walls.
We need to know our starting point, because it shapes our strategy from the start.
Your Buyer Needs the Appraisal to Obtain Financing.
Prospective purchasers rely on financing from their financial institution to acquire a dental practice.
Financial institutions have departments dedicated to healthcare professionals, and to dentists in particular. Most financial institutions in Québec are prepared to finance up to 100% of the purchase price of a dental practice—but not without a recognized dental practice appraisal, prepared by an evaluator the institution recognizes and has approved.
The financing conditions are generally very favourable. In 2026, they often include:
of the purchase price financed
of financing
interest rate
of interest-only payments at the start
financing for new chairs, new equipment or new leasehold improvements
for the new owner
Conditions vary by lender and by purchaser, and approval remains the lender's decision.
We cannot even approach the bank without the appraisal.
It isn't a nice-to-have. It's a must.
Why the Choice of Evaluator Matters
Financial institutions accept appraisals prepared by dental practice evaluators they recognize and have approved.
A general business valuation or informal estimate prepared by someone without relevant dental practice experience will not meet the lender's requirements.
It is essential to work with a firm specialised in Québec, where the valuation is prepared by Québec professionals, for Québec.
At Meditax, we coordinate the appraisal with experienced dental practice evaluators recognized by the financial institutions.
Can You Wait Until You've Found a Buyer?
We generally recommend obtaining the appraisal before beginning the search.
A serious purchaser will often consult their accountant or financial adviser before making an offer.
Without a professional appraisal report, they may not have enough information to assess the asking price or formulate a meaningful proposal.
Waiting until a buyer has been identified can create unnecessary delays and leave both parties negotiating without a documented basis for value.
The appraisal should be part of preparing the practice for sale—not an afterthought once negotiations begin.
A Comprehensive Appraisal Requires Specialized Expertise.
Evaluating dental equipment is different from assessing leasehold improvements. Analyzing patient records is different from reviewing financial statements. And understanding the commercial lease is different from assessing the characteristics that influence goodwill.
That's why Meditax coordinates a comprehensive appraisal process involving professionals with expertise in the different components of a dental practice.
Dental & Non-Dental Equipment
A specialist assesses the relevant equipment, considering its type, age, condition and market value.
Leasehold Improvements
A specialist evaluates the improvements made to the premises, including treatment-room construction, cabinetry, plumbing, electrical installations and other permanent improvements.
Patient Base Analysis
Patient records and practice-management information are reviewed to assess relevant characteristics of the patient base, including activity and retention indicators.
Both electronic and physical records are considered where applicable, with appropriate confidentiality and privacy safeguards.
Financial Analysis
The practice's financial statements and supporting information are examined to assess revenues, expenses, profitability and financial trends.
Commercial Lease Review
The lease is reviewed for terms that may affect the practice's value or transferability, including duration, renewal options, assignment provisions and relevant restrictions.
Location & Operational Factors
The analysis considers the clinic's location, operating characteristics and other factors that may influence goodwill, buyer interest and marketability.
One Comprehensive Appraisal Report
The specialist assessments and supporting information are brought together to produce a professional appraisal report.
The strength of the process comes from bringing the appropriate expertise together—not expecting one person to assess every component of your dental practice.
How Does a Dental Practice Evaluation Work?
The process takes place in stages to ensure that the relevant information is collected, assessed and documented.
Initial Consultation & Quotation
We begin by gathering information about your practice, including its size, revenues, location and the purpose of the appraisal.
Based on that information, the appraiser determines the scope of work and provides a precise fee quotation.
Mandate & Document Collection
Once the mandate is confirmed, you receive a list of the required documents and information.
These may include financial statements, equipment lists, the commercial lease, patient statistics and other relevant practice information.
Specialist Assessments
The appropriate specialists assess the equipment, leasehold improvements, patient base and other components.
Site visits and additional information requests may be required.
Financial, Lease & Operational Analysis
The appraiser reviews the financial information, lease terms, operational characteristics and factors influencing market value.
Preparation of the Appraisal Report
The findings are consolidated and documented in a comprehensive appraisal report, including the valuation conclusions and supporting analysis.
Delivery & Next Steps
Once the report is completed, we can discuss how its findings relate to your intended sale, asking price, potential buyer pool and transaction planning.
Specialized assessments. A coordinated process. One comprehensive report.
What Is Included in a Dental Practice Appraisal Report?
The final deliverable is a written professional appraisal report—not simply a number or an estimated selling price.
The precise contents depend on the mandate, but a comprehensive report generally includes the following components.
A description of the dental practice, its location, operations and relevant characteristics.
A review of financial performance, revenues, expenses and relevant trends.
The assessment of dental equipment, non-dental equipment, inventory and leasehold improvements, as applicable.
An assessment of patient-related information and the intangible factors contributing to the practice's value.
An analysis of the circumstances that may influence marketability, continuity and value.
The appraiser's conclusions concerning the practice's value, supported by the methodology, assumptions and analysis appropriate to the mandate.
Why the Report Matters
The report provides a documented basis for establishing an asking price, evaluating offers, negotiating a transaction and supporting the purchaser's financing application.
It also helps identify factors that may influence how the practice should be presented to prospective buyers.
A professional appraisal gives you more than a value. It gives you the information needed to prepare for the sale.
How Long Does a Dental Practice Appraisal Take?
The timing depends on the size and complexity of your practice, the assessments required and how quickly the necessary information is provided.
Providing complete and accurate information promptly helps keep the process moving.
How Much Does a Dental Practice Evaluation Cost?
There is no single fixed fee for every dental practice.
The cost depends on the size of the clinic, its revenues, the complexity of the appraisal and the assessments required.
Once we have the relevant information, the appraiser can provide an exact quotation.
Request a Quote for Your Dental Practice Evaluation →Questions Dentists Ask About Practice Evaluations
Is a dental practice appraisal mandatory before selling?
A professional appraisal is not necessarily a legal requirement for every dental practice sale.
However, it is strongly recommended because it establishes a documented basis for the asking price and negotiations.
The buyer's lender will also require a professional appraisal by a dental practice evaluator it recognizes.
I already have a buyer. Do I still need an appraisal?
We generally recommend one, even when the buyer is an associate, colleague or someone you know.
An appraisal helps both parties understand the basis for the price, and the buyer's lender will require it for financing.
Can my accountant tell me what my dental practice is worth?
Not simply by reviewing your financial statements.
Reliable dental practice valuation requires specialized knowledge of dental practice operations, transactions, purchaser expectations and the factors affecting marketability.
An accountant with extensive, current dental practice valuation experience may have that expertise. A general accounting estimate is not a substitute for a comprehensive professional appraisal.
Can I use a multiple of revenues or EBITDA?
Financial multiples may be useful starting points, but they do not establish the practice's value on their own.
Two clinics with similar financial performance can have very different values because of their equipment, patient base, staffing, location, lease and operating characteristics.
Can I wait until I find a buyer to get the appraisal?
You can, but we generally recommend obtaining it beforehand.
A prospective purchaser and their financial advisers need reliable information to evaluate the opportunity and formulate an offer.
Having the appraisal ready can also reduce delays during negotiations and financing.
I had an appraisal done a few years ago. Is it still valid?
An older appraisal can provide useful historical information, but your practice's value may have changed.
For an intended sale, we generally recommend an appraisal completed or updated within the preceding 12 months.
Depending on how much has changed, the original appraiser may be able to update the report rather than prepare a completely new appraisal.
An update may cost considerably less than a new report, although the fee depends on the work required. The purchaser's lender may impose its own recency and report requirements.
Is the appraisal only about financial performance?
No.
The appraisal considers financial performance together with equipment, leasehold improvements, patient base, goodwill, staffing, lease terms, location and other relevant characteristics.
Will the appraisal tell me how quickly my practice will sell?
It cannot predict an exact selling timeline.
However, it can identify characteristics that may influence buyer demand, the size of the potential purchaser pool and the practice's marketability.
Will the appraisal guarantee my selling price?
No.
An appraisal provides a professional opinion of value based on the information, assumptions and valuation date stated in the report.
The final sale price depends on negotiations, purchaser demand, financing, transaction terms and other circumstances.
Will the buyer's bank accept the report?
Financial institutions accept appraisals prepared by dental practice evaluators they recognize and have approved. That is why the choice of evaluator matters.
Each financial institution determines its own requirements, and financing approval remains the lender's decision.
Can I have my practice evaluated even if I'm not ready to sell?
Yes.
Understanding the current value of your practice can help you plan your retirement, evaluate future options and identify issues worth addressing before a sale.
You don't need a buyer or a confirmed selling date.
Before You Sell, Establish What Your Practice Is Worth.
Whether you already have a buyer, are preparing to find one or are beginning to consider retirement, a professional dental practice appraisal gives you a clearer understanding of your practice and the factors that influence its value.
At Meditax, we coordinate the specialized assessments and comprehensive appraisal process needed to prepare you for the decisions ahead.
Understand the value. Identify the opportunities and obstacles. Prepare for the sale.
Request a Dental Practice Evaluation →Serving dentists throughout Greater Montréal and surrounding areas.