Important: This is a sample report for a completely fictional practice created for illustration purposes. "Sunset Family Dental" does not exist. All numbers, names, and findings are invented to demonstrate the depth and format of the report. This document is not a formal appraisal, not a guarantee of sale price, and not tax or legal advice. A real Broker's Opinion of Value is based on information and financial documents provided by the client.
01 · Practice Snapshot
Specialty
General Dentistry
Location
San Diego, CA 92103
2025 Collections
$1,184,000
3-Year Avg Collections
$1,101,000
Payer Mix (PPO/FFS)
72% PPO / 28% FFS
Collections Trend
↑ 8.5% YoY
Collections trend (3-year): $1,013,000 (2023) → $1,107,000 (2024) → $1,184,000 (2025). Consistent upward trajectory with no year-over-year decline. Positive trend supports upper-range valuation when presented to a buyer's lender.
02 · SDE Add-Back Schedule
Seller's Discretionary Earnings: the true pre-tax economic benefit to a full-time owner-operator. This is the number a buyer's lender underwrites to.
| Line Item | Amount | Category |
|---|
| Starting point |
| Net income per 1120-S (2025) | $183,400 | Base |
| Owner compensation add-backs |
| Owner W-2 salary | + $220,000 | Add-back |
| Owner payroll taxes (employer share) | + $13,640 | Add-back |
| Discretionary & personal expenses |
| Owner health insurance (family plan) | + $22,800 | Add-back |
| Owner auto lease & fuel (personal use) | + $11,200 | Add-back |
| Dental CE / travel (excess above industry norm) | + $9,400 | Add-back |
| Retirement plan contributions (owner's portion) | + $61,000 | Add-back |
| Life / disability insurance (owner) | + $8,200 | Add-back |
| Non-recurring items |
| One-time equipment repair (CBCT unit, 2025) | + $18,500 | Add-back |
| Legal fees — lease renegotiation (non-recurring) | + $6,200 | Add-back |
| COVID PPP loan forgiveness income (already excluded) | — | Note |
| Adjustments |
| Market-rate associate replacement (owner production offset) | − $140,000 | Adjustment |
| Documented SDE | $414,340 | — |
Note: SDE is not the same as net income. The add-back schedule is the evidence document a buyer's lender will scrutinize. Every line above is supported by the practice's tax return and P&L.
03 · Dual-Method Valuation Range
Two independent methods, reconciled into a single defensible Broker's Opinion range. The market tests both.
Method 1 — Collections Multiple
$828K – $1.07M
70%–90% of $1,184,000 trailing 12-mo collections. GP dentistry with positive trend, urban location, and strong payer mix supports the upper band. Applied range: 70%–90%.
Method 2 — SDE Multiple
$870K – $1.04M
2.1×–2.5× documented SDE of $414,340. Multiplier reflects consistent trend, strong active patient count, and 6-operatory build-out with remaining lease term.
Broker's Opinion — Reconciled Range
$850,000 – $1,050,000
Methods reconciled by weighting collections (60%) and SDE (40%), consistent with how regional dental lenders and dental-specific buyers evaluate comparable GP practices. This is a Broker's Opinion of Value — not a formal appraisal or a guarantee of sale price.
The final sale price will be determined by buyer demand, deal structure (asset vs. stock, real estate), and negotiation. Practices of this profile in San Diego have sold between 82% and 95% of collections in the past 24 months. This opinion reflects that evidence.
04 · Overhead Benchmarking
Your overhead ratios vs. dental industry benchmarks (ADA Survey of Dental Practice data). Below the benchmark = lean = value-positive.
| Category | Your Practice | Industry Bench. | Status |
|---|
| Dental supplies | 5.4% | 5.0–7.0% | ✓ Lean |
| Lab fees | 6.8% | 7.0–10.0% | ✓ Lean |
| Staff wages & benefits (non-owner) | 26.1% | 24.0–28.0% | ✓ Normal |
| Rent / occupancy | 6.2% | 5.0–8.0% | ✓ Normal |
| Marketing | 3.1% | 2.0–5.0% | ✓ Normal |
| Equipment / depreciation | 3.8% | 3.0–5.0% | ✓ Normal |
| Professional fees (legal, acct) | 2.4% | 1.5–3.0% | ✓ Normal |
| Insurance (malpractice, general) | 1.9% | 1.5–2.5% | ✓ Normal |
| Technology / software / IT | 2.2% | 1.5–3.0% | ✓ Normal |
| Total Overhead (excl. owner comp) | 58.0% | 58.0–65.0% | ✓ Below avg |
Overhead finding: Total overhead of 58.0% is below the GP dental average of 61–63%. This is a favorable finding — lower overhead at the same collections level means higher SDE, which supports the upper end of the valuation range. Lab fees and dental supplies are both lean, likely reflecting strong purchasing habits or a high-efficiency restorative mix.
05 · Lien & Encumbrance Check
Public UCC filings and lien search on the practice entity and owner. Buyers and their attorneys will conduct their own due diligence; this report surfaces what they will find.
| Search | Entity / Name | Result |
|---|
| UCC-1 filings — California Secretary of State | Sunset Family Dental LLC | ✓ No active filings |
| UCC-1 filings — equipment / practice loans | Dr. Sample Owner DDS | 1 active — Bank of America equipment loan (2021, CBCT unit) |
| Federal tax liens (IRS) | Sunset Family Dental LLC | ✓ None found |
| State tax liens (FTB) | Sunset Family Dental LLC | ✓ None found |
| Judgment liens — San Diego Superior Court | Practice entity + owner | ✓ None found |
Lien note: The active UCC-1 on the CBCT unit (Bank of America equipment loan, 2021) will need to be satisfied or assumed at close. This is routine in dental practice sales and typically does not impair a transaction, but the buyer's attorney and lender will require it to be addressed before escrow closes. Estimated remaining balance: ~$28,000.
Note: Public lien searches reflect available records at the time of this report. A formal title search and full due diligence review are conducted by parties in escrow. This is a preliminary check, not a legal opinion.
06 · Digital Presence Audit
Three audit tracks. Buyers and their consultants check all three. A strong digital presence supports patient-retention arguments post-sale — and each gap below is something that can be fixed before you list.
🤖
AI Search Optimization Audit
2 gaps found
We checked whether AI search tools (ChatGPT, Perplexity, Google AI Overview, Bing Copilot) can find and cite your practice when patients ask AI for a local dentist. This is the fastest-growing patient acquisition channel — and most practices are invisible to it.
❌
Not appearing in AI search for "dentist San Diego" — When we prompted ChatGPT and Perplexity with high-intent local queries, your practice was not cited. AI models prioritize structured data, schema markup, and authoritative directories. Your site has none of the three required triggers.
❌
No structured schema markup on your website — AI search engines and Google's AI Overview both rely on LocalBusiness + DentalClinic JSON-LD schema to verify, index, and cite a practice. Your site has zero schema markup. This is a 30-minute fix with significant ranking impact.
⚠️
Google AI Overview — not present in tested queries — "Family dentist in Mission Hills San Diego" and 4 related queries returned an AI Overview panel. You did not appear. Competitors with schema + recent review activity appeared in 3 of 4 panels.
✓
Google Business Profile is active and complete — 4.8 stars, 214 reviews, correct NAP (name/address/phone). This is the one signal you have that AI models do pick up. Protecting and growing this is your highest-ROI AI move right now.
What this means for your sale: A buyer's consultant will run these exact queries during due diligence. Absence from AI results raises patient-acquisition risk concerns post-sale — which hits the multiplier. This is a fixable gap that we can resolve for you in 1–2 weeks.
📈
SEO Audit
3 gaps found
We checked your local search visibility — Google rankings, keyword coverage, Google Business Profile optimization, backlinks, and directory presence.
✓
Google Business Profile — strong — 4.8 / 214 reviews. "San Diego Family Dentist" category claimed. Photos present. Top 3 local pack result for your immediate ZIP code.
❌
Not ranking for mid-funnel service keywords — "Invisalign Mission Hills", "dental implants San Diego 92103", "emergency dentist open Saturday San Diego" — zero organic presence on page 1. These are high-intent patient searches with transaction intent. You're giving this traffic to competitors.
⚠️
Backlink profile is thin — 12 referring domains. GP practices with comparable collections in your metro area average 35–60 domains. Thin backlink profiles suppress rankings and reduce your domain authority as a trust signal to buyers' consultants.
⚠️
Zocdoc booking link broken — You're listed on Zocdoc but the booking integration returns a 404. This is a patient-conversion leak and a directory inconsistency that damages local SEO signals. Estimated fix: 20 minutes with your front desk.
✓
Yelp (4.5 / 87), Healthgrades (4.7), Vitals — all active — Multi-directory presence is healthy. These are secondary review signals that reinforce your Google profile.
Buyer implication: Strong local pack presence in your ZIP is a genuine asset. The service-keyword gap is recoverable in 6–12 months with content investment — worth doing if you're not selling immediately. The Zocdoc fix is worth doing this week regardless.
🌐
Website Audit
Stale — last updated ~2–3 years ago
We checked your website for technical health, content freshness, conversion setup, and the visual signals a buyer's team will notice.
✓
Live and functional — sunsetfamilydentalsandiego.com loads cleanly. HTTPS valid (SSL expires March 2027). Mobile responsive — passes core mobile test.
✓
Online scheduling enabled — Via Lighthouse integration. Functional booking = patient acquisition asset a buyer will value.
⚠️
Content appears 2–3 years old — No blog posts, news, or service updates since approximately 2022–2023. Stale content signals to both patients and Google that the practice is not actively marketing itself — which can create a pre-sale narrative a buyer's team may use to negotiate down.
⚠️
Page speed — needs improvement — Mobile PageSpeed score 61/100. LCP (Largest Contentful Paint) is 4.2s. Industry target is under 2.5s. Slow pages suppress rankings and reduce conversion from ads or organic traffic.
❌
No social proof on homepage — 214 Google reviews are your most powerful conversion asset — they're not displayed or linked on your website. A single review widget on the homepage can increase new-patient conversions by 15–20%.
Bottom line: Your site is healthy enough not to hurt your sale. But a buyer who reviews it will note the staleness as evidence of an owner who has "checked out" — which can reinforce a lower offer. A lightweight refresh (updated photos, a few content additions, speed fix) is a low-cost, high-perception investment before listing.
Overall digital finding: Strong review foundation (4.8 Google, 214 reviews) is your single most powerful digital asset — this is real. Two critical gaps: AI search invisibility (fixable in days) and stale website content (fixable in weeks). Neither will kill your sale, but both are leverageable by a buyer's team at the negotiating table. Fix them before listing.
07 · Licensing Verification
California Dental Board license status. Clean licensure is assumed by buyers; anything that isn't clean will surface in due diligence and can materially affect the transaction.
| License | Number | Status | Expires | Notes |
|---|
| CA Dental Board — DDS License | DN 99999 | ✓ Active | June 2027 | Renewal in 12 months — flag for transition planning |
| DEA Registration | Sample | ✓ Active | Jan 2028 | No restrictions |
| Disciplinary history (CA Dental Board) | — | ✓ None found | — | — |
| Malpractice claims history | — | ⚠ 1 closed claim (2019, settled) | — | Disclose in due diligence; no board action resulted |
| Business license — City of San Diego | BL-20210044 | ✓ Active, current | Dec 2026 | Annual renewal |
Licensing note: The 2019 malpractice settlement with no resulting board action is a standard disclosure item but is unlikely to impair the sale. DDS license expires June 2027 — a buyer who closes in the next 12 months should confirm the license is renewable (it will be for a practicing dentist with a clean record). No surprises found.
08 · Planning Calculator Outputs
Based on the information provided. These are planning estimates — discuss with your CPA and financial advisor before acting.
Monthly Income Needed in Retirement
$18,500 / mo
Based on $180K/yr lifestyle target, 3% inflation adj.
Retirement Nest Egg Required
$3.7M
25× annual spend (4% withdrawal rule), 25-year horizon
Practice Sale Net (at midpoint $950K)
~$680K after tax
Est. after CA + federal cap gains; consult CPA for exact figure
Healthcare Bridge Cost (to Medicare)
$98,000
Est. 8 yrs × $12,250/yr (family ACA marketplace plan, age 55→65)
Sell Now vs. Wait Analysis
| Scenario | Est. Sale Price | Net After Tax | Gap to Retirement |
|---|
| Sell now (2026) | $950,000 | ~$680,000 | $3.02M gap |
| Wait 3 years (optimize overhead) | $1,080,000 | ~$770,000 | $2.93M gap |
| Wait 5 years (collections grow 6%/yr) | $1,240,000 | ~$880,000 | $2.82M gap |
Waiting does grow the practice value — but the gap to retirement remains material because the gap is driven by lifestyle spend, not just the practice value. The real question isn't "what will the practice be worth then" — it's "what else am I building between now and then." This report gives you the number to plan around. Your CPA and financial planner complete the picture.
09 · Value-Lever Analysis — What You Can Move vs. What You Can't
Your value is not fixed. Some levers you can pull before listing — others are structural. Knowing the difference is what separates a practice that sells at the top of the range from one that settles in the middle.
What You Can Move
Improvements that raise attractiveness or documented value — ranked by ROI and effort.
1
Add-back documentation
Every undocumented personal expense running through the practice is a dollar that doesn't make it into SDE. Two years of clean, supported add-back schedules is the single highest-ROI thing you can do.
ROI: Very high · Timeline: Immediate · Needs: Your CPA + our schedule
2
PPO fee schedule renegotiation
Delta, Cigna, MetLife fee schedules are negotiable, especially for a practice your size. Even a 3–5% fee increase on your dominant PPO moves your collections and SDE meaningfully.
ROI: High · Timeline: 3–6 months · Needs: PPO negotiation consultant
3
Hygiene expansion / unused chair-days
You operate 4.5 days/week with 6 ops. Adding a hygienist day or a part-time associate drops directly to collections — the easiest documented growth a buyer can see.
ROI: High · Timeline: 3–9 months · Needs: Staffing + scheduling
4
AI search & SEO presence
Schema markup, GBP optimization, and directory cleanup can move you into AI search results in 30–60 days. At your collections level, one new patient per week = $15K–$25K added to trailing collections in a year.
ROI: Medium-high · Timeline: 2–12 months · Needs 6+ months for SEO ranking; AI/schema is fast
5
Overhead trim (lab fees, supplies)
Your overhead is already lean (58%). Targeted supply renegotiation or lab vendor change can reduce costs by 0.5–1.5% of collections — meaningful at your volume.
ROI: Medium · Timeline: 1–3 months · Needs: Vendor review
6
Website & review profile refresh
Freshening your website content and displaying your 214 Google reviews removes a negotiating point from buyers — and protects your multiple. Low cost, moderate impact.
ROI: Medium · Timeline: 2–4 weeks · Needs: Designer or AI page tools
What You Can't Change
Structural factors that are baked in — buyers will underwrite these as-is. Your job is to maximize what you can move.
—
Location & neighborhood
Mission Hills is a strong San Diego sub-market — this is in your favor. But you didn't choose it for the buyer's benefit, and a buyer in Poway won't relocate it. Location is priced in.
Fixed · Already reflected in valuation
—
Building footprint & operatory count
6 ops, 3,200 sq ft — you can add equipment within existing space, but the physical envelope is set by the lease. A buyer building out more ops needs a new lease anyway.
Fixed · Lease-bound
—
Lease terms & remaining duration
June 2029 expiration with one 5-year option. This is adequate but not ideal. Lease negotiation before listing (adding options, locking rent) is the one "fixed" item you can actually soften.
Mostly fixed · Lease negotiation possible pre-sale
—
Specialty & payer mix history
General dentistry, 72% PPO. You could shift the mix over years, but no buyer is paying a premium for a PPO transition you started 6 months before listing. This is your baseline.
Fixed for listing purposes
—
Collections history (3-year record)
Your $1.01M → $1.11M → $1.18M trend is already your best asset — it's locked in. You can add to the trend, but you can't revise history. This is what lenders underwrite.
Fixed · Already working for you
Honest caveat on timing: Some of these levers — especially SEO rankings, PPO renegotiation, and hygiene expansion — require 6–12+ months to show up in documented collections. If you're selling within the next 90–120 days, the levers that matter most are add-back documentation, the AI/digital quick fixes, and pre-listing lease hardening. If you have 12+ months, the full stack pays off. This is exactly why the time horizon matters — and why the free slider below models it.
Broker's Opinion of Value — Disclosure: This report is a Broker's Opinion of Value prepared by Jonathan Ingalls, CA DRE #01926047. It is not a formal appraisal as defined by USPAP or any federal or state statute. It is not a guarantee of sale price, a promise of financing, or tax or legal advice. The opinion is based on financial information and representations provided by the client. Accuracy of this report depends on the accuracy of the information provided. AI-assisted research and calculation tools were used in preparing sections of this report; all findings were reviewed by the licensed broker. This report is strictly confidential and intended only for the use of the client who ordered it.