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I am looking for a formal resource that I can use for doing valuations for dental equipment. A financing source we are thinking about using for practice transitions has asked for more detailed information concerning equipment values. I would like to see if anyone knows of a “blue book” type of resource that uses a standardized method.

Ken Smith
Peak Performers, Inc
www.peakdental.com

Tags: equipment, valuations

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Most Dental Equipment Specialists with Dental Dealers like Patterson, Benco, Schein etc have people who can give you some help, but there is no "Blue Book" Value for used equipment that I know of. In addition, once you aske these dental equipment specialists who sell dental equipment, you might find that they will want to sell your customers.

Stefan Luger
Steve-Thanks for the input. I know the big vendors provide the service, but if my client is not using the vendor I may choose to work with , I'm not sure I want to open that can of worms with competing vendors. My thought is to get a source that the vendors are using themselves to determine values .
Use a typical depreciation formula based on equipment life expectancies...
Peter-Thanks for the input. The challenge I think is the banker , who is not familiar with dental practices, is looking for some hard assets to use as collateral. Unfortunately the depreciation schedule will not give a true market value if the equipment is used and needs to be sold.
If that's the case use the IRS Guidelines

http://www.irs.gov/app/vita/globalmedia/p946.pdf
I have done literaly a hundred or more evaluations, and there are different formulas I use to determine equipment value. The problem is - its' the same as evaluating a furnished house. How much is the furniture really worth? It has useful value if the new owner of the house likes the stuff and will keep it for its' intended purpose, but it has little value if you have to physically remove it. Sometimes, you may even consider some equipment a negative assett (like an old film based panoramic I have at an office that is no longer working and cost the new purchaser close to $1000 to have removed by the time he was done.
You pretty much need to use an experienced local guy to give you these valuations.
I hope this helps

Warren
Your Everything Dental Consultant
DMDrep.com
Warren-I think your input is on target with what I’ve been trying to tell the banker. The value of used dental equipment is very subjective and based on what the market will bear. Those who know dental practices understand the value is goodwill which is intangible. I believe we all know dentists who have older equipment that no one wants to buy. It works for them and is functional, but if it’s more than a few years old it’s not attractive, especially to a newer grad.
That looks pretty simple:) The IRS document I mean.
Bill-Thanks for the link it definitely has a lot of info there
Ken, we provide dental market values to the largest banks and financial instituions. We have sales prices on all types of dental equipment from the past 5 years including ADEC, CEREC, BELMONT, PELTON & CRANE, etc. We can review a spreadsheet and tell you exactly the OLV (Orderly Liquidation Value), FMV (Fair Market Value), and in place sales to a Dentist Value, including patient charts.

Regards,

Northbay Networks, Inc.
www.northbay-networks.com
510-903-8994
Doug Cain
Doug-Sounds like we should talk. Please contact me when you have a chance, I’m on East Coast time
Ken Smith
www.peakdental.com
888-477-7325
sound like Doug over at Northbay-Networks is the 1 to talk to.

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Created by Dental Sales Rep May 14, 2008 at 7:30pm. Last updated by Dental Sales Rep Dec 9, 2010.

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