How to compare two dental practices for sale, side by side

Buyers often end up choosing between two or three practices that look similar on paper. The listing numbers rarely settle it. A side-by-side comparison of the same items for each practice, including the market around it, usually does.

Start with a comparison table

Fill this in for each practice. Leave a cell blank rather than guessing, and treat blanks as questions for the seller.

Item	Practice A	Practice B
Asking price
Collections, last three years
Trend in collections
Active patients (seen in last 12 months)
New patients per month
Payer mix
Operatories, and room to add
Key staff staying
Equipment needing replacement soon
Lease: years left, renewal, assignable
Seller transition period
Residents per general practice nearby
Household income nearby
Population growth nearby
Recent openings nearby

Compare the practices

Price against what you get. A lower price for a practice with falling collections may cost more in the end than a higher price for a stable one. Ask your appraiser to explain each price in the same terms.

Patients. Compare active patients using the same definition for both, and compare new-patient flow, not just totals. See how to evaluate a practice's patient base.

Fit. Which practice's payer mix, procedure mix and size match how you want to practice? A great practice that does not fit you is a hard purchase to live with.

Space and equipment. Room to grow and equipment you will not need to replace soon both have real value.

Compare the markets

This is where similar practices often turn out to be different. Two practices with the same collections can sit in very different markets:

Saturation. Measure residents per general practice within a short drive of each office. The US average is about 3,850. The lower the number, the more competition for each patient.
Competition by specialty. A pediatric or orthodontic practice faces different competition than a general one.
Growth. A growing area supports new patients. A shrinking one works against you.
Income. Shapes fee-for-service potential and case acceptance.
Recent openings. New offices nearby may not show in either practice's history yet.

Use the same source and the same radius or drive time for both, so the comparison is fair. Count competitors from a list a person has checked; online maps include closed offices and duplicates.

See buying in a crowded market vs an underserved one.

Make the call

Rule out any practice with a red flag you cannot resolve. See red flags to watch for.
Compare what is left on fit, then on market, then on price.
Ask your CPA, attorney and lender what they see that you do not.

Frequently asked questions

What matters more, the practice or the market? Both. A strong practice in a crowding market and an average practice in a growing, underserved one can end up in similar places a few years later. Compare both before deciding.

How do I compare markets fairly? Use the same measures, the same source and the same distance or drive time around each practice.

Can Dentagraphics compare two practices' markets? Yes. An Area Analysis ($745) compares the markets around several practices or regions at once, with handwritten analysis by a demographer. A Start/Buy membership lets you run the searches yourself. Dentagraphics does not appraise the practices.

How Dentagraphics helps

Area Analysis ($745): compare the markets around two or more practices, written by a demographer.
Single-Site Study ($695): a deep look at the market around one practice.
Start/Buy membership ($149 per month): unlimited address and area searches and listings from many brokers in one place.

Our competition data covers 118,330 US dental practices verified by hand. We do not broker practices and hold no stake in any location.

Choosing between practices now? See a free sample report of an Area Analysis, or create a free account to compare their counties today.