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When dentists review a practice for sale, they often focus on revenue, patient count, and the asking price. What they rarely study closely enough is the procedure mix. The number of crowns, fillings, cleanings, or implants a seller completes can reveal more than any financial sheet.
One of the clearest examples from the transcript shows two very different practices. Both have patients. Both have revenue. But only one gives the buyer a strong future. Understanding this difference can protect you from buying a practice that produces well today but collapses once you take over.
Imagine a practice with 1,000 active patients and 1,000 crowns in a year. At first, it looks incredible. The revenue is high, the profit seems strong, and banks love the numbers. But this type of crown volume reveals something important.
A ratio like this often means:
When you walk in as a new owner, you might see patients with brand new crowns, veneers, restorations, and completed treatment everywhere you look. That leaves you with few ways to maintain the production levels the seller reported.
This can turn what looked like a strong practice into a tough situation where income drops quickly.
Now compare that to a practice with:
This is the scenario new owners dream of. The seller may be slowing down, close to retirement, or simply tired. They often treat only the tooth the patient complains about. The rest of the mouth may have untreated needs that the seller never discussed.
This creates:
Many buyers of these practices double production within a year because the work is already there. It simply has not been presented or diagnosed.
Your success depends less on the seller’s revenue and more on the remaining opportunity inside the charts.
Here is what buyers should review:
A practice with heavy crown volume may be profitable for the seller but flat for the buyer. A practice with low crown volume may look average on paper, but becomes highly profitable once proper care is provided.
This is why looking at procedures is more important than looking at collections.
Stepping into a practice where patients were used to minimal treatment planning can feel uncomfortable at first. You may diagnose five crowns where the previous dentist diagnosed one. Some patients will question the change.
But presenting complete care is part of your duty as a dentist. You are identifying real needs that protect long-term health. When the presentation is clear, visual, and based on evidence, most patients understand. This is part of the transition from a slow seller to an engaged owner.
A practice with 1,000 patients and 1,000 crowns is not always a win. It can be a warning sign that the seller has already completed most of the high-value work. A practice with a light crown count may look smaller but can carry far more opportunity.
When evaluating any office, always look at the procedure mix. It tells the true story of what you can produce once you take ownership.
See the full discussion behind these numbers.
Catch the full podcast episode to hear real examples of crown patterns, patient bases, and buyer risks.
Wes knows what's best for dental practices. He's been doing this for a long time and he sees lots of practices. He can tell me how our practice is doing, and what we can do to increase our productivity. With past CPA's, there were no ideas. It was all coming from me, saying "I think I can do better, but I don't know how." I come in to meet with Wes and he says "You CAN do better, and I know how."
PracticeCFO is in hundreds of dental offices around the country. They know what numbers should look like. They know what percentages of payroll, rent and supplies should be, and they will hold you accountable to those numbers, which will really help you stick to your plan and your path of growth and savings. That is invaluable
Whenever something comes up, whether it's building or practice related and we weren't sure where the numbers would go, PracticeCFO has been instrumental in helping us figure that out. I can't say enough of how important that is - that it goes beyond that initial partnership. They make sure this business marriage works.
When I go home from work, I don't spend a whole lot of time stressing about what my books look like, or how much I owe in taxes. By using PracticeCFO, the burden of keeping track of a lot of the big financial numbers and metrics are taken off my plate.
PracticeCFO helped me develop a plan for the future. I have colleagues that work with other accountants that don't have a plan - they just look at the numbers of the practice and that's it. There's no plan for 10, 20 years from now. But with PracticeCFO, you get that. PracticeCFO makes you feel like you're they're only client.
(In reference to his practice sale) What could've been super stressful, wasn't! When picking John and Wes, it was from word of mouth recommendations and other people's experiences from the past that really did it for me. And it turns out that those recommendations were right on the line.
Wes knows the business side of dentistry. His comprehensive plan will organize your personal and professional finances so you can focus on taking care of patients. Massive ROI.
I can’t say enough good things about everyone at PracticeCFO. Everyone on the team is professional, organized, knowledgeable, helpful and kind. They also respond to emails and phone calls immediately and are always happy to help. They have helped me navigate year-to-year as a business owner. PracticeCFO gives me peace of mind that my business is in good hands.
I love Practice CFO! They have helped me obtain a practice and maintain a practice. They are incredible people who are on top of everything and make owning and running the business portion of a practice easy. They couldn’t be better for my business and my sanity. They have every detail of the business and taxes taken care of where all I have to do is show up and follow their easy steps to success!
Practice CFO has the best tools I’ve seen for personal tax and financial planning in addition to top-tier corporate tax and accounting services. I have been very pleased with the level of quality service. They manage my monthly bookkeeping and accounts payable. It is a great system and saves me a ton of time, and it allows us to have monthly financial statements within a week of month end.
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