How to Appraise a Multi-location Dental Practice

When it comes to valuing a dental practice, a single-location office and a multi-location group are not the same. Multi-location practices carry a unique set of variables—each office may differ in profitability, team dynamics, lease terms, equipment, and patient demographics. Add to that the challenge of consolidating financials across multiple sites, and you begin to understand why appraising a group practice requires a more strategic, nuanced approach.

At Dental Strategic, we help dentists and dental practice owners across the country understand the full value of their business, whether they’re looking to grow, plan for a transition, or prepare for a sale. With decades of experience in evaluation and coaching, our team simplifies complex decisions so you can move forward with clarity.

This Article Will Address:

The best valuation methods for group dental practices
Key factors that affect the value of a multi-location dental business
How to assess performance across different locations
What timeline to expect during the appraisal process
Common mistakes to avoid when valuing multiple offices
Why working with a dental transition expert matters
How Dental Strategic can guide you through every stage

What Is the Best Method to Appraise a Dental Group Practice?

There isn’t a one-size-fits-all formula. The most accurate valuations use a hybrid of methods tailored to the practice’s structure, profitability, and growth stage:

Income-Based Valuation: Uses EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) or some other form of adjusted cash flow to estimate value. Usually, the Primary method.
Market-Based Valuation: Compares the practice to recent sales of similar dental groups in your region and specialty. Normally the Secondary method.
Asset-Based Valuation: Focuses on tangible assets like equipment, property, and supplies—ideal when financials are less stable. Rarely used method.

By blending multiple methods, we ensure that your appraisal reflects real-world value, especially when preparing for negotiations with buyers or DSOs.

What Factors Impact the Valuation of a Multi-location Dental Office?

Appraising a group dental practice means evaluating more than just production. Buyers and brokers will assess:

Location and local demographics
Annual revenue and profitability per office
Provider-to-patient ratios and clinical efficiency
Lease agreements and real estate terms
Equipment quality and technology adoption
Team structure, turnover, and leadership depth
Patient retention rates and new patient acquisition

Every one of these variables contributes to the buyer’s perception of risk and potential.

How Do You Evaluate the Performance of Each Location in a Dental Group?

Each office should be treated like a mini-business within your larger organization. Here’s how we break it down:

Analyze profit and loss statements by location
Measure production per provider and per operatory
Track new patient flow and recare appointment retention
Evaluate staffing ratios, wage structures, and turnover
Consider market saturation and local competition

When practices don’t track these metrics independently, it can delay the valuation process or lower perceived value.

How Long Does It Take to Get a Multi-location Dental Practice Appraised?

On average, expect the process to take 4 to 8 weeks, depending on:

The number of locations involved
The availability and accuracy of financial records
How well-organized your business operations are
Whether real estate is included in the valuation

If you’re thinking about selling in the next 12–24 months, getting started now puts you ahead of the game.

What Mistakes Should I Avoid When Valuing Multiple Dental Practices?

Even the most successful practice owners can miss crucial details. Avoid these common mistakes:

Using a single valuation model for all offices
Overlooking underperforming or outperforming locations
Failing to normalize owner compensation or personal expenses
Ignoring operational efficiencies or redundancies
Not viewing your business from a buyer’s perspective
Combining all locations into 1 Profit/Loss Statement instead of showing them separately

The more you can demonstrate consistent systems and scalable operations, the higher your valuation is likely to be.

What Are the Benefits of Working with a Dental Practice Broker for Multiple Offices?

Here’s what an experienced dental broker like Dental Strategic brings to the table:

Custom valuations tailored to each location and the group as a whole
Help organizing and presenting financials, production data, and KPIs
Access to DSO and private buyer networks
Guidance through due diligence, offer negotiation, and closing
A steady hand to manage the emotional, financial, and strategic complexity

You don’t need to go through it alone. We’ve been through this process with dozens of practices, and we’ll guide you every step of the way.

How Dental Strategic Supports Multi-location Dental Practice Owners

Whether you’re expanding, preparing to sell, or simply want to know what your practice is worth, we’re here to help. Our services include:

National experience with multi-location dental groups
Custom valuation models designed for dental operations
Strategic coaching to increase value before transition
Full support from the first consultation to the final agreement

Clients praise our professionalism, honesty, and constant communication, and we take pride in making complex transitions smoother, more strategic, and more profitable.

Plan Your Next Move with Dental Strategic

If you’re ready to evaluate or grow your multi-location dental practice, let Dental Strategic be your trusted partner. Our team offers the tools, knowledge, and one-on-one support you need to take the next step—whether that’s selling, scaling, or simply understanding your practice’s full value.

Contact Dental Strategic today to schedule a consultation and begin the valuation process with confidence.