Is This Practice a Deal—Or a Dud?

Practice score calculator

• •https://main-bonded-practice-score-135248227012.us-west1.run.app/

Most buyers stare at a selling price, a collections number, and a broker packet… and then “go with their gut.”

That’s how you overpay, inherit someone else’s problems, or pass on a great deal because it “felt off.”

You don’t need more opinions. You need a scorecard.

That’s what the Practice Score Calculator is for: one tool that grades a practice’s health + risk + price and spits out:

• •A 0–100 score (A/B/C/D band)
• •A “Max Offer” estimate based on cash flow and payback
• •The top 3 red flags to fix or price in

What the Practice Score Calculator measures We built it around the stuff that actually matters to an owner-operator, not 15 vanity ratios.

It is built around cash flow and profitability primarily. There are many different ways to evaluate a practice and arguments can be made for all of them but the most important is, is the office profitable.

You plug in basic info from tax returns, P&Ls, and a quick ops snapshot. The calculator scores:

Cash flow margin

• •How much profit drops after real expenses.
• •Uses EBITDA or SDE ÷ collections.
• •Healthy solo: generally 20%+ after a market-rate doctor salary.

Revenue quality

• •Collection rate and payer mix.
• •High collections and FFS/PPO-heavy = good.
• •Heavy Medicaid and low collections = discount or pass (unless this is your model, the calculator wont account for this)

Payroll & overhead discipline

• •Staff wages as % of collections.
• •Labs, supplies, rent inside sane ranges.
• •You see instantly if the seller has a lifestyle business or a real business.

Hygiene & patient engine

• •Hygiene as a % of production.
• •New patients/month and recall strength.
• •Tells you if there’s a base of patients or all one-off dentistry.

Growth capacity

• •Unused ops, days/hours, and 3-year growth trend.
• •Is there room to grow without a build-out?

Concentration risk

• •How much production the seller personally does.
• •If the seller is 80–100% of production, that’s real risk on day one. (easily fixable though)

Facility/contract quality

• •Lease term & options, non-compete, digital stack, equipment age.

The calculator adds all this up into a Practice Score out of 100.

85–100: A – Great practice. Pay near full fair value. 70–84: B – Good, with a few fixable issues. 55–69: C – Only at a discount. <55: D – Probably pass. How it handles price: “Is the asking price sane?” Once you plug in cash flow and asking price, the tool also checks:

Practice value estimation on EBITDA Practice value after improvements estimated yearly take home for owner-operator estimated yearly take home for absentee owner.

If the seller’s ask is above the practice value you know exactly how much of a haircut you need… or that you should walk.

How to use it: 1- Grab the last year or preferably the last 2-3 years:

• •Tax returns
• •P&Ls
• •Production/collection reports
• •Practice info (chairs, equipment, etc)

2-Enter the numbers into the calculator:

3- Practice Score (0–100, with A/B/C/D band) Key red flags (top 3) Max Offer and payback

4-Decide:

-A/B: worth negotiating seriously. -C: only if discounted and you’re comfortable fixing problems. -D: your time is better spent on the next deal.

Why this matters if you’re buying or selling through Bonded If you’re an associate looking at your first buy-in or a seller thinking of listing your practice on Bonded:

Run the Practice Score first so you don’t get hypnotized by a “pretty” listing. Know exactly where the practice is strong, where it’s weak, and what a sensible price range is before you ever tour.

Then:

Use the calculator, get your score, and when you’re ready, create your free Bonded account to see practices for sale, staff, and comps in one place.

That way, you’re not guessing. You’re buying (or selling) based on math instead of emotion.