---
title: "What Is Practice valuation? Dental Practice Glossary"
description: "Practice valuation is an estimate of what a dental practice is worth, prepared for a sale, purchase, buy-in, financing or other purpose using accepted valuation..."
url: https://joncopeland.multisites.ai/glossary/practice-valuation
publisher: Copeland Consulting Services
email: drcopeland@joncopelanddds.com
contact: https://joncopeland.multisites.ai/contact
---

Finance and valuation

# Practice valuation

Practice valuation is an estimate of what a dental practice is worth, prepared for a sale, purchase, buy-in, financing or other purpose using accepted valuation methods.

The ADA says beginning with an accurate valuation sets the stage for effective negotiations and prevents the misunderstandings that often kill deals. It lists scenarios that call for a valuation, such as buying or selling, and notes that a valuation gives a purchaser numbers to use in deciding whether to buy and how to get financing. The IRS says appraisers should consider all three generally accepted approaches, the asset-based, [market](https://joncopeland.multisites.ai/glossary/market-approach) and [income](https://joncopeland.multisites.ai/glossary/income-approach) approaches, and use professional judgment to pick among them. Value depends on purpose and method, so two valuations can differ. A formal [practice appraisal](https://joncopeland.multisites.ai/glossary/practice-appraisal) is done by a qualified appraiser. Owners should ask an attorney and a CPA about tax and legal effects.

[Next stepPractice consulting with Dr. Copeland](https://joncopeland.multisites.ai/contact?topic=consulting)

## Related terms

-   [Practice appraisal](https://joncopeland.multisites.ai/glossary/practice-appraisal)
-   [Goodwill](https://joncopeland.multisites.ai/glossary/goodwill)
-   [Cost approach](https://joncopeland.multisites.ai/glossary/cost-approach)
-   [Market approach](https://joncopeland.multisites.ai/glossary/market-approach)

## Sources

1.  [ADA, Buying or Selling a Dental Practice, Start with an Accurate Valuation](https://www.ada.org/resources/careers/buying-or-selling-a-dental-practice-start-with-an-accurate-valuation)
2.  [IRS, Internal Revenue Manual 4.48.4 Business Valuation Guidelines](https://www.irs.gov/irm/part4/irm_04-048-004)

## Talk with Dr. Copeland

[Contact Dr. Copeland](https://joncopeland.multisites.ai/contact)[Email](mailto:drcopeland@joncopelanddds.com)