Unpacking Practice Valuations with Brannon Moncrief

• Starting Dentappraisal
  • Background of Brannon
• When did the 75% – 85% of topline revenue become the practice valuation?
  • Easy metrics
• Specialty Practices
  • Buy-ins and margins are substantial
  • High profitability
  • Level of vulnerability
• What portion of sales are from people wanting to sell their practices vs those looking to onboard a partner
  • Reviving management burden
  • Moving locations
• EBITDA or subjective valuations
• 7 key factors for valuation
  • Revenue level and trends
  • Profitability level and trends
  • Type and size of patient base
  • Hygiene production and service mix
  • Facilities and equipment
  • Location
  • Opportunities for growth
• Average profitability of practices of 1.5 million and above
• Definition of EBITDA
• What is the average payment the DSO is taking after you sell?
• How private equity more often that not doesn’t help industries
• The average days on the market for a practice
• Options available on the marketplace
• Advice to the industry
  • Know your revenue
  • Monitor your practice
  • Manage it appropriately
• What is missing from the market

Dentappraisal