ASSET VALUATION

[pdent]

Has anyone had experience in placing a value on assets in the dental lab? Used equipment, consumables etc. Preparing to sell my lab and this is one of the many steps I need to take towards that end. Any help is appreciated!

 

[CatamountRob]

Has anyone had experience in placing a value on assets in the dental lab? Used equipment, consumables etc. Preparing to sell my lab and this is one of the many steps I need to take towards that end. Any help is appreciated!

Do you have employees? If it's just used equipment and supplies, look on eBay and see what stuff is selling for. My guess would be about 25-40% of the cost of new for equipment.

 

[2thm8kr]

Do you have employees?

Are you suggesting he sell the employees?

 

[CatamountRob]

Are you suggesting he sell the employees?

Yes! That is where the real value in a lab lies.

 

[pdent]

Do you have employees? If it's just used equipment and supplies, look on eBay and see what stuff is selling for. My guess would be about 25-40% of the cost of new for equipment.

I do have 2 employees and I am certainly willing to throw them into the deal. The valuation might be a little tricky though.

 

[JohnWilson]

Anyone selling a business can put ANY value on it. It's worth what someone is willing to pay for it right?

Small labs are just about impossible to sell for any real tangible return. The "good will" is just not something that has value in my opinion. Until your sales are north of 1.5 to 2mil a year you are selling used equipment and your job. No one should buy a job right? The transitional phase is what needs to be negotiated, this is why many of the larger lab groups negotiate for the owner to stay on for some time to "transition" the relationships to the new owner.

As for used equipment if its modern well cared for and still "VIABLE" for today's market I as a buyer would value it at .15cents on the retail dollar.

 

[user name]

My first target would be selling to the current employees. Second would be a Doctor, probably an office with two or more Doctors. Id also be selling all the good points to the guys on here.

 

[pdent]

Good points all. We've had 2 denture labs in the area sell for about 250-300k in the last 10 years and their numbers were similar to mine. It's just time to wind things down, I am turning 65 this year. I don't mind staying for the transition.

 

[JohnWilson]

Good points all. We've had 2 denture labs in the area sell for about 250-300k in the last 10 years and their numbers were similar to mine. It's just time to wind things down, I am turning 65 this year. I don't mind staying for the transition.

Good luck with your transition/sale

 

[sidesh0wb0b]

sadly, even well maintained used equip resells for a fraction of the cost of new.
.10/dollar up to about .30/dollar of new

if you would like a reseller, I just met up with one and would be happy to share my experiences and their contact info. (I don't get paid for the referral either! lol)