Frequently Asked

Questions, answered plainly.

Below are the questions practice owners, CPAs, and brokers ask most often before running their first valuation. If yours isn’t covered here, we’d love to hear from you — the email at the bottom reaches a real person.

About Practice Worth
What is Practice Worth?

Practice Worth is a self-serve valuation tool built specifically for dental practice owners. You enter your practice’s financial information through a guided wizard; we apply the same EBITDA reconstruction, owner-compensation normalization, and market-multiple methodology a broker or DSO buyer would use. You receive a broker-ready PDF report with your practice value range in minutes, for a one-time $499 ($299 founder pricing for our first 50 customers with code FOUNDER200).

Who is this for?

Three groups in particular:

  • Practice owners considering a sale within the next 12–36 months who want a defensible number in hand before talking to brokers, DSOs, or buyers.
  • Owners doing succession or estate planning who need a current valuation for trust funding, partnership buy-in calculations, or family planning conversations.
  • CPAs, brokers, and lenders who want a fast, professional valuation to deliver to their dental clients.
How is this different from a formal practice appraisal?

A formal appraisal from an accredited valuator (CVA, ASA, ABV) typically costs $4,500–$10,000, takes four to six weeks, and includes site visits, a deep review of normalized financials, and a defensible report admissible in litigation or IRS matters.

Practice Worth is not that. It is a fast, inexpensive, self-serve valuation built on the same underlying methodology. Use it when:

  • A formal appraisal isn’t economically justified yet.
  • You need a number quickly for planning or to start a broker conversation.
  • You want to see what a DSO analyst would compute before inviting them in.

For high-stakes legal, tax, or partnership-buyout situations, you should still engage a credentialed valuator.

Will my number hold up with a real buyer?

Generally yes — within a reasonable range. Practice Worth applies industry-standard add-back conventions and conservative multiples drawn from public DSO transaction data. When a buyer’s analyst rebuilds the model, they will typically arrive within roughly ±10% of our number, assuming your inputs were accurate.

The two largest sources of variance:

  • Real estate value — we value the practice as a going concern; we do not appraise real property.
  • Quality-of-earnings adjustments a buyer may apply after their own due diligence.

The methodology page walks through every assumption.

How does Practice Worth handle owner compensation in the valuation?

Owner compensation normalization is the most important adjustment in any dental practice valuation. It determines whether your number reflects what a buyer will actually see post-sale, or just the accounting profit on your current P&L.

When you sell your practice, the buyer needs someone to do the dental work you currently do. That clinician — whether it’s you staying on as a post-sale associate, or a new hire taking over — has to be paid at market rate, not at whatever you currently pay yourself. Buyers care about the real cost of maintaining your production after you’ve left, not the W-2 number on your tax return.

Practice Worth normalizes this in two steps:

  • Add back what you currently pay yourself. All owner W-2 salary plus benefits (health insurance, 401(k) contributions, disability and life insurance, and similar items).
  • Subtract the replacement doctor cost. The market-rate cost of a hired associate producing the same dollar amount you produce, calculated as a percentage of your owner production using current market replacement rates.

The net effect depends on your situation. If you pay yourself above market rate, normalization increases your adjusted EBITDA and your valuation. If you pay yourself below market rate, it reduces your adjusted EBITDA and your valuation. Practice Worth applies the calculation to your actual numbers so you see the real ongoing cash flow a buyer would inherit.

For multi-provider practices, the calculation extends to each owner-clinician separately. Outside-P&L 1099 contractors are handled at a different replacement rate than W-2 associates, and W-2 associates already at market compensation usually require no adjustment at all. The methodology page walks through how Practice Worth applies these rules to each provider type.

Does Practice Worth account for factors specific to my practice that affect what a buyer will pay?

Yes. After the wizard reveals your Adjusted EBITDA, the Practice Profile screen captures 20 factors that influence where in your published valuation range a real buyer offer is likely to land.

The factors are organized into three groups:

  • Risk Profile (11 factors): payer mix, market type, physical location, owner production share, providers, lease security, equipment and technology state, collections trend, specialty mix, and hygiene strength.
  • Growth Optionality (5 factors): operatory expansion capacity, demographic trajectory, specialty referral out-flow, market saturation, and patient acquisition channels.
  • Deal Structure (4 factors): cash at close versus equity rollover, owner transition commitment, real estate handling, and earnout posture.

Risk Profile and Growth Optionality selections feed a soft tier-lean indicator (Discount-leaning, Mid-range, or Premium-leaning, with a five-band variant for $2M+ practices) and narrative bullets in the printable report. Deal Structure selections appear in a separate Effective Proceeds Considerations section because they affect realized cash to the seller rather than the headline multiple.

Every selection is optional. The headline valuation range stays the same regardless of which selections are made — the indicators are interpretive context only. See the methodology page for the full lever list and how the tier-lean is calibrated.

The Report
What’s included in the report?

An approximately 20-page PDF that includes:

  • Your practice value range — low, target, and high.
  • Step-by-step EBITDA reconstruction from your reported Net Income.
  • Owner-compensation normalization to market-rate replacement.
  • Discretionary add-backs applied, with rationale for each.
  • The multiple selected and why.
  • Practice Profile Analysis explaining where in the range a buyer offer is likely to land.
  • Effective Proceeds Considerations covering deal-structure factors that affect realized cash.
  • DSO methodology vs. owner-operator (SDE) methodology comparison.
  • Comparable-transaction benchmarks from the dental market.
  • Glossary of terms for sharing with non-finance readers.

You can preview a complete sample on the sample report page.

How long does it take to get my report?

Roughly 10–15 minutes to walk through the wizard with your numbers. Once you submit, your PDF is generated and emailed to you in under two minutes. You can also download it any time from your dashboard.

What inputs do I need to provide?

At minimum, the figures from your most recent full year:

  • Annual collections.
  • Net income from your P&L.
  • Owner W-2 compensation.
  • Owner clinical production.
  • Depreciation, amortization, and interest expense.
  • A handful of yes/no questions about your practice (location, specialty mix, hygiene structure, etc.).

If you can pull last year’s P&L and your Collections by All Provider report, you have everything you need. The P&L (from your accountant or QuickBooks) gives you net income, depreciation, interest, and owner compensation. The Collections by All Provider report (from your practice management system) gives you annual collections and the owner clinical production split. The wizard explains each input as you go and offers reasonable defaults where applicable.

Can I share my report with my CPA, broker, or lender?

Yes. The PDF is yours to use however you’d like — email it, print it, hand it to a broker, attach it to a loan application. The report is unwatermarked and fully shareable.

Can I edit my inputs or re-run my report after purchase?

Each report is generated from the inputs you provide and is final once delivered — you keep the PDF and can re-download it from your dashboard for 12 months, but the underlying numbers are locked.

If you spot a typo or input error within 7 days of purchase, email hello@getpracticeworth.com and we’ll regenerate the report for you at no charge.

To value a different practice, or to re-run with materially updated numbers (a new fiscal year, post-acquisition figures, a partner buy-in scenario), you’ll need a new report.

Pricing & Refunds
Why $499?

At $499, Practice Worth sits well below what a broker charges for a formal valuation ($1,500 to $4,000) and a fraction of what an independent appraisal costs ($2,500 to $30,000). You’re getting the same EBITDA-and-multiples methodology a DSO buyer would apply, delivered as a self-serve report with no listing relationship traded in exchange for the analysis.

For our first 50 founders, the price is $299 with code FOUNDER200 applied at checkout. Once the founder cohort fills, the price returns to $499.

Is this a subscription?

No. One-time payment for one practice valuation ($499 list, $299 founder pricing for the first 50 customers with code FOUNDER200). You own the report. We don’t auto-bill, send marketing blasts, or upgrade you to anything you didn’t ask for.

What is your refund policy?

14 days, no questions asked. If the report isn’t useful to you for any reason, email hello@getpracticeworth.com within 14 days of purchase and we’ll refund you in full.

After 14 days, refunds are at our discretion for material issues — a bug that prevented you from completing your report, the service being unavailable, or an erroneous charge. Full terms on the refund policy page.

Privacy & Data
What happens to my financial data?

Your inputs are stored encrypted in our database (Supabase, US region) so you can log back in and update your report. We do not sell, share, or use your data for any purpose other than generating the reports you request. Full details on the privacy policy page.

Who can see my report?

You and Practice Worth’s administrator only. We do not share your report or your underlying data with brokers, DSOs, lenders, or any third party. If you choose to share your PDF with your CPA, broker, or lender, that is entirely your call.

Support
How do I get help?

Email hello@getpracticeworth.com. We respond to every support request within one business day, Monday through Friday. Most questions we answer by email; for anything more involved, we’ll send a short Loom walkthrough or set up a 15-minute call.

Still have a question?

We’d genuinely like to hear it — both to help you, and so we can add it here for the next person who wonders the same thing.

hello@getpracticeworth.com
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