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Value Drivers for a Dental Practice

Value Drivers for a Dental Practice

Value drivers for a dental practice typically answer the following questions: “What brings patients to my practice instead of a competitor?” and “What are the key aspects of my dental practice that impact its value?” These value drivers increase the value of your dental practice. By understanding where your business stands on each of the following value drivers, you can determine what changes to make to increase the value of your dental practice. Peak Business Valuation, business appraiser Utah is happy to answer any questions you may have. Schedule a free consultation today! For more ideas, see Valuation Multiples for a Dental Practice as well as Valuing a Dental Practice. 

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Value Drivers for a Dental Practice

In the following paragraphs, we discuss key success factors for a dental practice. For a more in-depth understanding of the value of a dental practice reach out to Peak Business Valuation by scheduling a free consultation. We are happy to answer any questions you may have as well as provide you with a business valuation!

Products & Services

First, each dental practice may have a different revenue breakdown. The main sources of revenue for a dental practice are restoration, preventative care, dental consultations, and diagnosis services. How does the revenue breakdown of your business compare to the industry average?

Below is data derived from IBISWorld for the dental industry. The IBISWorld report is from November 2020 under the NAICS code 62121. This is the average revenue breakdown by segment for the dental industry in 2020.

Dental Practice Products & Services:
  • Restorative Dental Services – 22.30%
  • Preventive Services – 16.40%
  • Dental Consultations & Diagnostic Services – 15.90%
  • Prosthodontics – 9.40%
  • Orthodontics – 9.30%
  • Surgical Oral Services – 7.00%
  • Nonsurgical Endodontic Services – 4.70%
  • Other – 15.00%

It is important to offer the most popular services, as well as diversified services. Doing so allows your dental practice to service all of your patients’ dental needs. A valuation expert such as Peak Business Valuation, business appraiser Utah, highly considers revenue breakdown when valuing a dental practice. 


Next, a team of highly skilled individuals is an important value driver for a dental practice. The number of hygienists that you have working, as well as their longevity with the business, will increase the value of your dental practice. Low staff turnover provides continuity for your patients. Additionally, continuity is seen as an indication of stability. This stability will help improve the relationship between your staff and customers. Furthermore, it will add value to your dental practice! Peak Business Valuation is happy to help you understand the value of your dental practice. Schedule a free consultation to get started!

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Referral Marketing Program

An effective way to bring value to your practice is by creating a referral marketing program. A referral marketing program is a word-of-mouth marketing technique. The goal is to incentivize existing customers to introduce their family and friends to become a patient at your practice. Common incentives include gift cards or discounts on future services. The value of your practice will increase as current patients refer family members and friends to your practice. In addition, incentivizing existing customers will increase customer loyalty. For more information see The Value of Customer Loyalty.

Facility & Equipment

The quality and type of equipment of the facility play a major role in the value of your dental practice. Having modern, up-to-date, and well-maintained equipment will increase the value of your practice. A buyer will be more likely to pay a higher price for the practice if the equipment is well-maintained and the facility is in good condition. Old, outdated equipment can make a dental practice more difficult to sell because the buyer will probably want to purchase new equipment. So having the equipment already updated is a big value driver!

Social Media Presence

Having a strong social media presence will bring value to your practice. The majority of new customers rely on social media to help them make the decision on whether to use your services. Social media is a great way to create and maintain relationships with current and potential patients. A strong social media presence shows potential buyers that there is a proven history of quality service. And, it is an effective way of attracting new patients. 

There are a variety of online review software programs out there designed to increase online interaction. Software programs can help your dental practice stand out and optimize SEO (search engine optimization) by increasing exposure to your practice. In fact, some people will focus more on customer reviews than on the price of the services. 

Happy customers = good reviews and good reviews = more business! 

Growth Opportunities

Last, when purchasing a dental practice, you want to ensure there are future growth opportunities. Some key growth opportunities might include:

  • Retaining more specialty procedures in-house
  • Reducing specific expenses moving forward
  • Initiating marketing-related activities
  • Altering or extending operating hours 

These opportunities can create potential value for someone looking to buy your dental practice. 


There are a variety of ways to increase the value of your dental practice. By implementing some of the value drivers discussed above, you can increase the value of your dental practice. Whether you are looking to sell or grow your business, implementing these value drivers will help. 

Peak Business Valuation, business appraiser Utah, helps by providing business valuations to value a dental practice. If you have any questions about your dental practice and how to increase its value, feel free to reach out to us. We would be happy to help in any way that we can! You can contact us by scheduling your free consultation below!


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