When most dentists hear the word appraisal, they think of a number.
- A price.
- A target.
- A starting point for negotiations.
But a good appraisal does much more than estimate value. It functions more like a diagnostic tool—an objective way to understand how a practice is performing, where risk exists, and how the practice is likely to be perceived by the market.
Why the “Price Tag” Mindset Falls Short
A single number, taken out of context, doesn’t help sellers make good decisions.
Two practices can appraise at similar values and still experience very different outcomes once they go to market. Why? Because value alone doesn’t explain why buyers are comfortable, or hesitant.
That’s where diagnostics matter.
What an Appraisal Actually Reveals
A thorough appraisal looks beyond gross production and collections. It helps identify:
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How dependent the practice is on the current doctor
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Whether systems and staffing support a smooth transition
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How consistent and sustainable cash flow really is
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Where buyers and lenders are likely to ask questions
In other words, it shows not just what the practice is worth, but how defensible that value is.
Timing Matters More Than Most Realize
An appraisal done years before a transition serves a very different purpose than one done during a transaction.
Early on, it provides clarity:
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What’s strengthening value
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What’s quietly limiting it
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Which issues are easy to address—and which are structural
That insight allows sellers to make changes deliberately, not reactively.
Why Buyers Value Diagnostic Clarity
Buyers aren’t just buying revenue. They’re buying confidence.
When an appraisal clearly explains the practice’s strengths and risks, it reduces uncertainty. Less uncertainty leads to:
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Smoother negotiations
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Fewer surprises during due diligence
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More productive conversations on both sides
Using Information, Not Guesswork
Whether you’re five years from a transition or actively planning one, decisions based on assumptions tend to limit options.
An appraisal isn’t about telling you what you want to hear. It’s about giving you the information you need to decide what makes sense—for your practice, your timeline, and your goals.
Clarity doesn’t force action. It gives you control.