Determining the value of a dental practice is difficult. There are many variables that play a role in understanding the true value of a practice. If you are a buyer seeking a practice, how can you sort through all the information to determine the one that best suits your needs? For sellers, how do you know how much your practice is really worth? You need to look at location, critical dental practice statistics, and the size of the practice, just to name a few. We know that this information isn’t exactly easy to find or figure out.
At JPA Dental Transitions, one of the features of our website that makes us different from other brokers is our Practice Stats Report, but what is this report?
Our Practice Stats report is a simple one-page report that tells you the statistics of the dental practice you are browsing. We like to think of it as a medical health report, putting our finger on the pulse of a practice and taking its vitals. But why did we feel the need to create another report of practice information?
We’re going to walk you through why we created the report, the benefits, and what the report is based on. Let’s get started!
Why We Created the Dental Practice Stats Report
We could have stuck with what everyone else provides (and has provided) since practice transitions first began, such as regular valuations. But we saw a need in the marketplace. We saw that:
- Buyers were overwhelmed and frustrated by a tidal wave of numbers, statistics and information, which is a broker’s bread and butter. However, for a first-time buyer, it feels like a strange unfamiliar world full of a million questions.
- Buyers needed a quick way to know whether or not a practice should be on their radar, a way to combat the “information-fatigue” that is relentlessly prevalent in this industry.
This is why we created the Practice Stats report - it serves as simple, initial review of a practice for a buyer.
Benefits of the Practice Stats Report
Benefit #1: Practice Stats creates a way for browsing buyers to answer their own basic criteria questions about a practice on their own terms:
- Is it the right size?
- Is the production right?
- How much work will this practice need?
- Is it in a good location?
All of these are basic questions that buyers need to answer to assess if a practice could potentially be the right fit. On the listings page, a buyer can select a listing and then click the button that says “Get 1-Page Practice Stats Report”. Once the report is downloaded, the buyer will quickly receive a one-page download of the Practice Stats Report for the practice listing being reviewed.
Benefit #2: Practice Stats speed up the process for buyers to obtain the information they want. No waiting for Non-Disclosure Agreements or sifting through mountains of information to get a few basic nuggets of vital information.
Through these benefits, the Practice Stats allows us to create better, more serious buyers for sellers.
Benefit #3: Practice Stats continues to keep the identity of the selling doctor under wraps while providing valuable information to buyers. Once a Buyer sees the Practice Stats report they can then judge if the practice could be the right one for them, and if so, move on to the next step of signing a Non-Disclosure Agreement. The buyer then obtains the seller’s detailed practice information. The addition of Practice Stats as a first-step for the buyer helps us weed out potential non-matches, which in turn, results in a reduction of the seller’s sensitive practice information being sent out needlessly.
What is the Practice Stats Report Based On?
Practice Stats is not based off of what we THINK the ratings of your practice should be. The information is derived from expert performed evaluations on your practice and is then boiled down into the Practice Stats Report.
Here’s what your Practice Stats are based on:
- A cash-flow evaluation or a full-evaluation (that contains a cash flow).
- We analyze production reports, profit and loss statements, adjust for overhead all to find the net revenue of the practice.
- Tried and true industry standard methods (we use a few different ones to keep everything as accurate as possible!) to make sure that the Practice Stats reports are every bit as accurate as our cash-flow or full practice-valuations. (Learn more about this on our Appraisals page.)
- Information pertaining to equipment age, technologically advanced features, potential growth room, and practice location.
Do we ever use some experience and intuition to rate a practice’s vitals? Yes, sometimes it does come into account, but none of the information considered is without merit. All of our Practice Stats Reports are reviewed and verified by the broker. No information is provided without a sound basis.
From concept to fruition, we are very proud to offer Practice Stats Reports to our sellers with any valuation they opt to receive from us. We are happy to offer a solution that benefits buyers to the fullest extent, taking away the stress of buying a dental practice.
We work hard to ensure that Practice Stats helps prove to you, our clients, that we do not merely come into work, do the minimum that is expected of us and leave for the day without another thought to the requests that you have entrusted us with. We take it beyond that, to make the sometimes stressful, unpredictable process of a transition, as smooth, easy and successful as we can. Even if we have to go out of our way to create something new to rise to the challenges this industry presents.