Dental Practice Valuation Secrets: A Broker’s Tell All - What Buyers Are Actually Paying For

What’s a Dental Practice Really Worth? A 20-year broker breaks down why 95% of sellers reject DSOs and the real formula buyers should use.Marie Chatterley has been appraising dental practices since before most of her clients were born, her firm, CTC Associates, has been doing this work since 1988. Mike sits down with her to take apart how practice valuation actually works, starting with the three questions every buyer asks (collections, operatories, new patients) and why all three can be misleading. They get into why a 3-chair practice can collect $1.8M, why 50 new patients a month at a 30-year-old practice is a red flag, and the real math brokers use: most practices sell for 150–200% of profit, not a percentage of collections. Marie also breaks down why 95% of her sellers are choosing independent buyers over DSOs right now.💡 ABOUT OUR GUEST:Marie Chatterley – Owner, CTC Associates • Leads a dental practice brokerage founded by her father, Larry, in 1988 • Represents sellers and regularly fields valuation questions from buyers across Colorado, Utah, Montana, Idaho, Wyoming, Washington, New Mexico, and Alaska Personally appraises practices using income, asset, and market-based valuation methods • Has guided clients through two decades of practice transitions, from PPO-heavy startups to fee-for-service powerhouseshttps://ctc-associates.com/0:00 Introduction & welcome 1:33 Why practice valuation is the topic today 3:23 Meet Marie Chatterley of CTC Associates 4:51 Inside the practice listing process 8:00 The 3 questions buyers ask (and shouldn’t) 8:55 Why collections don’t equal profit 9:43 A 3-chair practice collecting $1.8M 10:20 Why 50 new patients a month is a red flag 11:18 How many new patients you actually need 11:42 What buyers should be asking instead 12:50 Income after debt service explained 14:10 Inside a practice appraisal questionnaire 16:00 Income, asset & market valuation methods 17:55 How brokers validate financial add-backs 22:00 Debunking the percentage-of-collections myth 23:55 DSO vs. independent buyer cash at close 27:53 Why 95% of sellers choose independent buyers 32:55 The fee-for-service trend reshaping value 35:30 Is buying a fee-for-service practice risky? 37:47 The attrition number nobody can prove 40:00 Why buyer student debt keeps climbing 42:00 The $250K line that splits two markets 43:00 The real rule of thumb: 150-200% of profitAbout the Hosts:Mike Dinsio, MBA and Paula Quinn, BSDH run Next Level Consultants, helping dentists buy, start, and grow practices with real numbers instead of guesswork.https://nxlevelconsultants.com YouTube Channel: https://www.youtube.com/channel/UCsstfKdLw7yVdFj7eG0vRxAFacebook Page: https://facebook.com/DentalUnscripted/🎬 PRODUCTION: Dental Unscripted Hosted by Michael Dinsio, MBA & Paula Quinn, BSDH Produced by Next Level Consultants © 2026 Dental Unscripted. All rights reserved. The content provided in this video is for informational purposes only and does not constitute legal, financial, or tax advice. Always consult with a qualified professional regarding your specific situation.