Full Scope Advisory Team
LPS clients benefit from a team of 30+ experts dedicated exclusively to IDSO partnerships. LPS handles the entire IDSO partnership process for clients.
- Determining potential practice value
- Identifying qualified biddersCoaching clients to highlight their unique attributes
- Creating a bidding contest among multiple qualified bidders
- Attending finalist practice tours and dinners
- Negotiating high value, tax efficient structures, both in initial value and long term equity potential
- Managing due diligence, audit, legal and closing process
Dental Practice Valuation
Growing practices of all types are still achieving record values in 2025. Shrinking practices are not. The primary risk to practice values in 2025 is a decline in collections which may be caused by numerous external factors including stressed consumers or a recession. Doctors who do not wish to wait years to return to growth, due to a recession may want to consider their IDSO options today; not later. Thanks to Earn Out provisions negotiated by LPS, doctors can lock in today’s high multiples on future earnings in the two years after their initial IDSO partnership.
Doctors can confidentially learn the value of their practice in an IDSO partnership today, without cost or obligation, by clicking below to schedule a brief introductory call.
Overview
Challenges Dentist Face in Selling Their Dental Practice. IDSO partnership is not a short term retirement or transition strategy, but rather a long term generational wealth building partnership.
What is EBITDA?
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is calculated differently by every IDSO and can vary widely. EBITDA is functionally the net cash flow of a practice after excluding interest, taxes, depreciation, amortization and most importantly, after deducting owner doctor compensation on a go forward basis.
Many doctors will ask their CPAs to calculate their practice EBITDA and the answer is almost always missing the compensation to the owner doctor for their work. The amount of compensation to the doctor on a go forward basis is negotiable but generally is dictated by the cost in that market to replace the doctor.
Practice Valuation
Confidential, No Obligation, No Cost
Qualified practices are invited to receive a complementary value of their practice in an IDSO partnership. There is no cost or obligation and will provide a doctor with valuable information not available elsewhere.
LPS will calculate a practice’s EBITDA and will provide an estimated value for the practice in an IDSO partnership based upon its unique attributes and recent transactions in the doctor’s demographics. The value will also be determined by the IDSO bidders eager for specific areas and/or practice types at that moment in time. The LPS valuation process may also give doctors suggestions on areas to improve their practice for higher values in the future.
Dental Practice Appraisal
LPS does not provide a traditional “Practice Appraisal” which might be used typically for financing or associate buy-in purposes. The LPS valuation process gives the doctor a value of their practice in an IDSO partnership which is typically far higher than a traditional doctor-to-doctor transition.
Dental Trifecta
A strategy that increases values for pedo, OMS and ortho practices by 20% to 50% in some cases.
A Dental Trifecta® is created when LPS assembles pediatric, orthodontic and OMS practice clients in the same region and partners them with a single IDSO either concurrently or over time. Practices are not merged, but a Dental Trifecta locks in lasting referral relationships benefiting all practices individually and through their equity ownership in the IDSO.
This short and long-term practice value enhancing process was created by and is available only to LPS clients. It increases the initial and long-term values of our pedo, ortho, and OMS clients nationally. When an IDSO purchases the right practices in a region, we’ve proven that rapid, internal growth is created, increasing profitability and long-term gains through IDSO ownership.
“An orthodontist in Florida came to us about to sign a $19 million dollar offer from a solid IDSO. We had just helped partner multiple practices with this IDSO in the past 90 days, and we knew they would pay more. But we also knew that with the proper bidding contest, he could get at least 2x that value.”
Learn more about how LPS Beat the DIY Offer by 123%
10.5x
EBITDA
General Practice
9x
EBITDA
Periodontist
11.1x
EBITDA
Pedo/Ortho
12x
EBITDA
OMS
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Frequently Asked Questions
What factors result in an accurate dental practice valuation?
The value of a dental practice is determined by various factors including collections, location, growth rate, procedures performed, payers accepted, doctor age, tangible and intangible assets, and market demand. However, in an IDSO partnership, the number one factor is practice profitability, or EBITDA and growth rate.
When should I consider getting a valuation for my dental practice?
Every qualified practice owner should go through the LPS valuation process. Dental professionals will learn the value of their practice in an IDSO partnership today and may gain tips as to how to increase the value of their practice both short and long term. An LPS valuation is confidential and without cost or obligation. Practices which qualify are GP’s with $1.8 million in collections and specialists with at least $1.5 in collections.
What is the difference between a valuation and an appraisal?
LPS’ dental practice valuation methods are specifically designed to inform doctors of the potential value of their practice in an IDSO partnership. It is not an appraisal of the practice value for other purposes including a doctor-to-doctor transition, financing or estate planning.
How Can I increase the value of my dental practice prior to a sale or IDSO partnership?
A keen focus on cost control and EBITDA growth will increase the value of any practice today. Current and organized financial reporting will enable a doctor to understand where their practice can be improved on a daily or monthly basis. Consulting with LPS can also help identify key opportunities to boost value. A dental practice sale is something a doctor will do once in their life and expert advice will help a doctor achieve maximum value.