General & Advanced Dental Practice RDS226

Built from scratch, this established general and advanced dental practice, founded in 1988, is owned by a sole proprietor who is seeking to transition into retirement. Committed to ensuring a smooth handover within the next 12-18 months, the owner is offering mentorship and guidance to the new owner to help them become familiar with the patient base and daily operations. Supported by extensive education and experience, the practice is well-equipped to handle complex aesthetic and reconstructive cases, providing comprehensive general, cosmetic, restorative, and specialty dental care. With their comprehensive range of services and strong focus on patient care they are well respected within the dental community. Located in Eastern Kansas, the practice currently serves an active patient base of 1,453 individuals who have been seen within the last 12 months and have a total client base of ~7,900 patients on file. Operating four days a week, although the dentist has recently reduced their production days to three, the practice is supported by a staff of four full-time employees, including the owner (dentist), an office administrator, a hygienist, and a chairside assistant. Only the longest tenured hygienist and a chair-side assistant are likely to remain with the practice after the transition. 

Since the beginning, this practice has consistently expanded its service offerings to keep pace with the evolving dental industry, positioning itself to see success among its competitors. Core daily operations encompass general dental and hygienist services including; routine exams, prophylaxis, cleanings, fluoride treatments, X-rays, fillings, crowns, bridges, and root canal treatments, among others. Additionally, the hygienist is trained and qualified to provide advanced general periodontal treatments. A comprehensive array of cosmetic services is also available, such as; teeth whitening, ClearCorrect aligners, dental bonding, smile enhancements, and porcelain veneers. Additionally, for patients requiring advanced care, the practice offers specialized restorative services such as pinhole surgery, TMJ treatment, dental implant placement and restoration, laser tissue treatment, and full mouth reconstruction. Furthermore, the practice offers an in-house dental savings plan; a membership program designed to provide financial relief for patients with little or no insurance coverage. 

Located in a well-established neighborhood, this 2,750-square-foot facility features a thoughtfully designed layout, including multiple workstations fully integrated with their Dentrix dental practice management software. Initially, the building and property will not be included with the sale of the practice but would have a fair market negotiated lease agreement in place and may potentially be available for purchase in the future. Entering through a designated entryway there is an ample naturally lit waiting room with a reception equipped with a Dentrix-integrated workstation for patient schedulingUpon passing through the initial set of French doors, on the left-hand side is a client restroom and on the right-hand side is an insurance processing / check out desk with 2 additional Dentrix workstations. Beyond this checkout area, there is a door that leads to a staff back-office, also furnished with a Dentrix workstation and a second door to a spacious consultation room featuring both a TV and a workstation leading to the treatment area of five operatories through a second interleading door. Three of the ops are for the dentist and two for the hygienist (all are right-handed). All operatories are outfitted with a dental chair, a mobile dental cart equipped with an ultrasonic scaler, overhead lighting, monitor, a Philips Whitening System, Acteon Satelec Newtron B.LED, and Accutron Nitrous Oxide Sedation System.  To the left of the operatories is the dentist's office with Dentrix-integrated workstation and likely installed with QuickBooks, along with a full bathroom and private access to the building’s exterior. Near the last corner operatory is a K7x Evaluation System, Comfort Cuff Patient Monitor, and Sirona Cone Beam Computed Tomography (CBCT) machine. Close to this, is the sterilization area equipped with a MidMark UltraClave Sterilizer, a Coltene BioSonic, and a Nomad System. Beyond the sterilization area is a dedicated laboratory, accessible through a separate entrance, equipped with specialized Handler Red Wing equipment including; a grinder, trimmer, etcher catcher, and Triad curing light. An employee break room with direct access to the parking area, has a bathroom, utility room, storage closet, and washer/dryer area. The sale of this dental practice will include all the practice assets, equipment, supplies, and a well-established patient list.  

Over the past 6 years, this practice has consistently grown at a compound annual growth rate (CAGR) of ~1.6%, achieving over $800k in collections, since the pandemic, for the past four years (2021-2024). Dental supplies and lab expenses are in line with industry norms and are ~11% of collections, translating to a ±89% gross margin for the practice. After normalization adjustments are made, to align the sole proprietorship with a S-Corporation setup, operating profit / net income are also estimated to be islightly above industry standards. Annual discretionary cash flow earnings (adjusted EBITDA), commonly referred to as "Doctor Gross Income" in dentistry, represents approximately $375K+ or ±45% of collections, ideal for a new dentist to service any debt financing and still receive a generous remuneration package. The estimated value range from this practice is between $560K and $690K or 67% to 82.6% of Collections in 2024 of $835K (excluding cash, receivables, liabilities and facilities). For illustration purposes, based on weighted averages of our analysis/method, as described in our valuation report, the estimate of value of this dental practice as of December 31, 2024  is around $620K or 74% of collections. (Note: this is only for guidance it is not RedTire's suggested price point)