Maximizing Your Dental Practice’s Valuation

The Dental CEO Podcast is designed for growth-minded dentists who want to lead with strategy and clarity. Host Dr. Scott Leune focuses on helping practice owners shift from clinicians to executives—whether they’re growing, optimizing, or preparing to sell.

In this episode, Scott explores how dentists can maximize the valuation of their practice, especially if they’re thinking, “How do I sell my dental practice in the next 1 to 3 years?” He uses a detailed, real-world scenario to walk through the exact changes a dental CEO should make to increase sale value.

About Dr. Scott Leune

Dr. Leune is a leading authority in dental business strategy. He has built, scaled, and sold practices, and now coaches other dentists to do the same. Through webinars, consulting, and his podcast, he provides a clear roadmap to increasing EBITDA and preparing for a profitable exit.

He doesn’t just teach theory—he helps dentists make real financial gains through smarter management, cost control, and growth planning.

Key Highlights

1. Understanding Dental Practice Valuation

• Scott teaches us that the value of your dental practice is based primarily on:
  • Your EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)
  • A multiple applied to that EBITDA
• Example he gives:
  • 3 locations = $6M in collections
  • $1M EBITDA
  • Valuation multiple = 9x EBITDA
  • Practice sale value = $9M
• Your goal? Raise EBITDA—either by cutting expenses or growing revenue.

2. Cutting Costs to Grow Value

Scott emphasizes that reducing overhead is the fastest and most reliable way to increase valuation:

• Software: Eliminate overlapping or unused subscriptions.
• Credit Card Fees: Pass fees to patients where allowed.
• Dental Supplies: Set a strict budget (target = 3% of collections). Avoid premium brands when unnecessary.
• Lab Costs: Switch to cost-effective labs and restorations. Test affordable options before the sale window.
• Payroll: Use assisted hygiene or outsource admin work to virtual staff.
• IT & PMS Software: Transition to cloud-based platforms to slash monthly bills.

Scott reminds us that every $10K you save annually adds $90K in sale price (at 9x EBITDA). These operational tweaks can lead to millions in added value.

3. Scott Leune’s Strategy for Growth

While cost-cutting is essential, Scott teaches us that growth is just as important—especially when it drives high-margin collections.

Here’s how he breaks it down:

• Fill capacity: Empty chairs = lost opportunity. Fill them with revenue-generating appointments.
• Expand hygiene: Even if your hygiene schedule is “almost full,” adding a hygienist can:
  • Capture walk-in or last-minute demand
  • Convert more phone and online inquiries
  • Add 1+ new patients a day = significant revenue
• Understand variable profit:
  • The cost to produce a crown in an already open chair is low
  • New procedures have very high EBITDA contribution
• Add assistants: Implement assisted hygiene to increase throughput without high staffing costs.
• Improve the funnel:
  • Marketing must convert
  • Calls must be answered and scheduled
  • Treatment must be diagnosed, accepted, and paid

Dr. Leune believes every part of your growth system—marketing, scheduling, treatment planning—must be optimized before a sale.

4. Hiring a Consultant is Part of the Dental Strategy

• Scott thinks every practice should bring in a coach or consultant for at least 1–3 years before selling
• Their fee is considered an add-back, meaning it doesn’t hurt EBITDA
• A good consultant guides you through maximizing collections and minimizing waste

5. Real-World Results

• Scott tells the story of a client who followed this plan:
  • Single location, grew from 5 to 17 ops
  • Sold for $13.7M
  • By cutting costs and scaling smartly, the doctor captured millions more
• Compare two scenarios:
  • Dentist A sells for $9M with $4M in debt and $1M in taxes → nets $4M
  • Dentist B sells for $18M with same debt and $3M in taxes → nets $11M

The difference? A focused, strategic, EBITDA-driven approach.

Final Takeaway from Dr. Leune

If you’re thinking, “Should I sell my dental practice soon?” then now is the time to prepare.

• Know your EBITDA
• Defend and justify your numbers
• Cut costs without cutting quality
• Expand revenue by increasing capacity
• Hire expert help and stay consistent

Selling a dental practice is not just about finding a buyer—it’s about showing them a business that runs clean, lean, and profitable.