Decoding Dental Practice Valuation with Mark Rosen

Dave Miller, host of the Rosen Dental Transitions podcast, discusses the valuation and sale of dental practices with special guest Mark Rosen, managing partner of Rosen and Associates. They address the influx of unsolicited offers dentists receive, the importance of understanding practice value, and the reasons practice owners seek valuations. The discussion highlights the shift from valuing practices based on collections to a more sophisticated EBITDA-based approach, driven by corporate and experienced buyers. Practical advice is offered on cleaning up expenses and distinguishing between personal and business expenses to maximize practice value. Key challenges such as rising staff costs, technological expenses, and rent are discussed, along with strategies to mitigate these and other costs. The podcast emphasizes strategic planning and actively managing transitions based on one's own terms rather than reacting to unsolicited offers.

Topics

00:24 Meet Our Special Guest: Mark Rosen

00:36 Understanding Practice Value in Today's Market

02:51 The Importance of Accurate Financial Records

03:33 Changes in Valuation Methods Over Time

04:52 Impact of Corporate Buyers on Practice Sales

09:34 Cleaning Up Your Books for Better Valuation

14:54 Key Expense Categories to Monitor

20:24 Planning Your Transition Timeline

26:37 Final Thoughts and Contact InformationEpisode Titles and Show Notes

Dental