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Setting an Asking PriceUsing a Business BrokerSelling a Business During DivorceSelling a Failing BusinessTransferring Intellectual PropertyPreparing an Online Business for SalePreparing for Sale, Two Years OutSelling a Business QuicklyWriting a Selling MemorandumSelling a Business Step by StepSelling a Business With DebtChanges Worth Making Before SellingCapacity is physical. Growth past it means building out, not working harder — and case acceptance decides how much of it you fill.
SDE is $351K against EBITDA of $151K. On $816K of collections, 57% of the earnings are the owner's own labour.
Read from the calculator on its shipped example. Lines marked (derived) are the difference between two of its figures rather than one it displays directly.
Every figure above is computed from inputs you control. Change one and the whole model moves.
Fifty-seven percent of SDE is the dentist working. That is a job being sold, and it prices differently.
$680 collected per patient a year across 1,200 actives. Retention is the whole model.
These charts are the calculator’s own, drawn from the example it ships with. Put your figures in and they redraw.
At this size the practice is the dentist. A buyer hiring an associate loses $200K of the $351K, so the price rests on whether patients stay when the face changes — which is exactly why a DSO and an individual dentist value the same practice differently.
Rules of thumb that circulate because they are roughly right. The calculator labels them as such and asks you to record your own source.
The tool applies all of this to your numbers, and tells you where it disagrees with itself.
On earnings after an associate is paid at market. On the worked example SDE is $351K and EBITDA is $151K — 57% of the earnings are the owner's own clinical work, and that is a job being sold rather than a business.
Operatories and hygiene days. Capacity is physical, so growth past it means building out rather than working harder, and case acceptance decides how much of the existing capacity you fill.
They are a discount you already agreed to. The tool separates production from collections so the write-off is visible rather than buried in an average fee.
Often, but they buy differently — longer earn-outs and tighter post-close terms. The tool prices the practice on its own earnings so you can see what the premium actually is.
The answers above use the worked example. Your practice will give different ones.
A practice purchase is rarely one loan. The price, the building, the chairs and the working capital are usually four different facilities, and the order they are arranged in decides whether the deal clears coverage at all.
The workhorse for a practice acquisition. Up to $5M over ten years, which is what makes the coverage work where a seven-year conventional loan would not.
Bank debt, seller note and equity tested together against the coverage the deal has to clear. The same price is affordable or impossible depending on how the stack is built.
A note on full standby can count toward part of the injection, and a seller who will not carry paper tells a buyer something. Price it at present value rather than face.
Only if the building comes with it. Cheapest money available and the slowest to arrange, and it does not fund working capital.
Chairs, imaging and CAD units, where a vendor lease quote hides its rate in a money factor. Convert it before comparing.
What the equipment deduction is actually worth once the entity and the tax rate are applied. It cannot create a loss, which catches practices near break-even in their first year.
Every 20% owner files one, and on a practice this size the guarantor is most of the credit decision. Liquidity matters more than net worth.
Chair capacity and case acceptance set the ceiling, and an associate at market is what separates a job from a business. Have that figure before a DSO puts one in front of you.
No credit card required now. As long as your details are in the system, we send the discount access details when the software opens.
And the financing calculators are free and working today. SBA 7(a), 504, CAPLines, Form 413, equipment and seller paper — your account opens all of them the moment you register, months before the valuation software ships.
The whole analysis exports as one PDF, generated server-side — every tab, the five-year history, the normalization and the working behind each figure. Not a screenshot of the tab you happen to be on.
It carries the business name, the period, who prepared it and for whom, so a lender or a buyer can act on it without asking who produced the figures.
One email when the software opens, and nothing else. Your details are not sold or passed on.
Figures are the calculator’s worked example, read from the tool itself. Thresholds described as conventions are not market observations. Saving is optional and off by default; saved work is encrypted at rest with AES-256. This tool produces estimates on figures you enter, not a valuation, appraisal, or legal, tax or accounting advice. ExitAdviser is operated by Simplifying Calculation LLC, a Delaware limited liability company.