An annual valuation

26 February 2021
2 min read

Maja Thompson explains the benefits of having a practice valued every year.

Every practice owner should have their dental practice valued yearly, as this will help them stay in tune with the market and take action to achieve a desired outcome. If you start with this process early in your ownership tenure, you will feel more in charge of the end result than if you leave it to the last few years. To put this into context, if each year during your ownership you improve the profit by 10 per cent, in 20 years your profit would have grown by 215 per cent.

Using the example of two practices with a starting yearly profit figure of £100k, if one practice has 20 years of continuous five per cent growth, this will yield nearly £1.5m more profit compared to no intervention. However, in the second practice there is a 10 per cent continuous growth and over 20 years this business yields £4.3m more profit than with no intervention. 

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