Posted on August 08, 2024
When it comes to valuing a dental practice, understanding the key factors that influence its worth is crucial. Location plays a significant role; practices near large towns tend to attract more patients. However, changing residential patterns and the rise of remote working are altering traditional views on location. The tenure rights of a practice also impact its valuation. A lease with a long term remaining is favourable as it offers stability, whereas short leases can deter buyers due to the potential need for short-term loans.
The type of patients, whether NHS or private, and the nature of the work performed are also critical in determining value. Financial health is another major factor. A struggling practice is likely to have a lower valuation due to its poor performance and profitability. The number of staff and their working hours also affect the cost base, influencing the final valuation.
The physical layout of the practice, including the number of surgeries and potential for expansion, is another consideration. Additionally, the availability of parking—whether adjacent, nearby, or free—can enhance the attractiveness of the practice to both staff and patients. Ultimately, while these factors play significant roles, the valuation is a nuanced process, with different elements carrying varying weights in each case.
