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Is That Practice Really Worth It? - Why You Need a Practice Valuation Before Buying

“You make your money when you buy” - Warren Buffett

Hi everyone,   

Buying a dental practice is one of the biggest financial decisions you’ll ever make. I’ve been through the process myself, and after working with so many clinics over the years, I can tell you this—the number on the listing doesn’t always reflect the true value of a practice. 

Too many buyers jump in based on surface-level figures—gross revenue, patient numbers, or even just a ‘gut feeling’ about the practice. 

But without a proper valuation, you could be overpaying, underestimating hidden costs, or even stepping into a business that won’t be as profitable as it looks on paper. 

Why Valuation is More Than Just a Price Tag 

A practice’s price is one thing—it's true value is another.  

According to the Harvard Business Review, between 70% and 90% of mergers and acquisitions fail to achieve their expected value. 

Beyond revenue, you need to assess profit margins, goodwill, recurring income, staff costs, lease terms, and future growth potential. 

I’ve seen deals where practices looked like a great buy, only for the new owner to discover hidden liabilities, rising overheads, or declining patient retention. On the other hand, some buyers have walked away from deals that, with the right structure, could have been a goldmine.  

A valuation helps you see the full picture before making a commitment. 

Our view is the valuation should be based on the future costs and opportunities, which we have seen over the years is rarely factored into the many valuations we have reviewed. 

The Cost of Getting It Wrong 

“You make your Money when you buy:” - Warren Buffet 

A poorly assessed practice purchase doesn’t just mean overpaying—it can impact your long-term financial security.  

Did you know that nearly 50% of business acquisitions fail to meet financial expectations due to incorrect valuations and poor due diligence?

For many dentists, buying a practice is a once-in-a-lifetime move. Getting it wrong can set you back years in lost profits, unexpected costs, or operational challenges you weren’t prepared for.  

The right valuation ensures you’re buying a business that aligns with your financial goals and growth plans, while protecting your principal investment. 

How We’ve Helped Buyers Make the Right Decision 

At Samera, we’ve not only valued and advised on countless practice acquisitions, but we’ve also been through it ourselves. We know what to look for, what red flags to spot, and how to ensure you’re making a sound financial decision. 

Whether you’re at the start of your journey or already considering a purchase, getting an expert valuation can give you clarity, confidence, and negotiation power. 

Challenge the Valuation  

One area we have found considerable success is working on behalf of the buyer of a dental practice.  

Through this service we initially carry out our valuation of the dental practice, but then help with the buyer negotiate better terms that are being marketed by the vendor or its agent. 

We often shave off up to 10-15% the marketed price, which can sometimes be six figures. 

Need help? 

Then book a call today to ensure your next move is a smart one. 

Until next time, 
Arun