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Paying too much for a dental practice? Most buyers don’t find out until it’s too late.
Check out Samera's Challenge the Valuation Service
Arun Mehra
May 22, 2025
Hi everyone,
It’s easy to get emotionally invested in a practice—good location, nice branding, a solid-looking patient list. But the truth is, most practice buyers pay more than they should, often without realising until months or even years after the deal is done.
But what you see isn’t always what you get.
I’ve been on both sides of the table—buying and selling clinics—and I can tell you this: asking price and actual value are rarely the same thing. The gap between the two? That’s where the danger lies.
What the Numbers Don’t Tell You
When the valuation is inflated, your repayments are higher, your cash flow is tighter, and it leaves little room for reinvestment. And that’s before you've even dealt with the operational tasks like hiring, maintaining equipment, or upgrading systems.
We once reviewed a valuation where goodwill alone made up 90% of the asking price—based on a one-off bump in revenue from emergency treatments during lockdown. The buyer nearly went ahead.
Situations like this aren’t rare. Goodwill valuations now average 133% of gross fees for mixed practices—but not all goodwill is created equal.
If patient retention is weak or profit margins are thin, those numbers don’t mean much. What matters is how the business performs after you take it over.
The Cost of Getting It Wrong
A report by the British Business Bank found that 35% of small business buyers regret their purchase within the first 12 months, mostly due to overestimated revenue or underestimated costs.
If you overpay on goodwill, you start behind. Repayments become tighter, cash flow shrinks, and profitability suffers.
Worse still, a poor valuation can mean missed issues with staffing, lease terms, equipment lifespans, or NHS contract stability—all things that affect the practice’s true earning potential.
And let’s be honest, brokers aren’t incentivised to help you dig into that. Their job is to sell the practice, not protect your future.
How We Help You Buy What It’s Actually Worth
This is where our Challenge the Valuation Service comes in—not just to verify a number, but to give you a reality check on what you're really buying.
We dive deep into adjusted EBITDA, spot hidden liabilities, and model the business’s sustainability post-completion.
In many cases, we’ve helped buyers renegotiate or walk away from overpriced deals—and in others, move quickly when we knew the value was real.
📞 Need some help? Let’s talk before you commit.
Until next time,
Arun