{"id":12749,"date":"2026-07-14T07:00:10","date_gmt":"2026-07-14T12:00:10","guid":{"rendered":"https:\/\/www.cainwatters.com\/digitalblogs\/?p=12749"},"modified":"2026-09-16T12:43:15","modified_gmt":"2026-09-16T17:43:15","slug":"wealth-podcast-ep-296","status":"publish","type":"post","link":"https:\/\/www.cainwatters.com\/digitalblogs\/wealth-podcast-ep-296\/","title":{"rendered":"What\u2019s Your Practice Really Worth? &#8211; Ep. 296"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"12749\" class=\"elementor elementor-12749\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"has_ae_slider elementor-section elementor-top-section elementor-element elementor-element-5e5b7b54 elementor-section-boxed elementor-section-height-default elementor-section-height-default ae-bg-gallery-type-default\" data-id=\"5e5b7b54\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"has_ae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5c8c5de9 ae-bg-gallery-type-default\" data-id=\"5c8c5de9\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-77a7209b elementor-widget elementor-widget-heading\" data-id=\"77a7209b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Understanding and managing overhead can significantly impact your practice's value. <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1488000d elementor-widget elementor-widget-text-editor\" data-id=\"1488000d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div><span class=\"TextRun SCXW23070019 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW23070019 BCX0\">In this episode of the Accumulating Wealth podcast, Judson Crawford\u00a0<span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\">joins Christy Ratcliff from\u00a0<a href=\"https:\/\/ndptransitions.com\/\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #33cccc;\">NDP<\/span><\/a>\u00a0and\u00a0<a href=\"https:\/\/www.7pillarsadvisory.com\/\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #33cccc;\">7 Pillars<\/span><\/a> to dive deep into a<\/span>\u00a0<\/span><span class=\"NormalTextRun SCXW23070019 BCX0\">crucial<\/span><span class=\"NormalTextRun SCXW23070019 BCX0\"> aspect of practice valuations: overhead. They break down how cash flow and risk factors can significantly affect dental practice valuations<\/span><span class=\"NormalTextRun ContextualSpellingAndGrammarErrorV2Themed SCXW23070019 BCX0\">\u00a0and<\/span><span class=\"NormalTextRun SCXW23070019 BCX0\">\u00a0share insights into how practice valuations are more than just a percentage of collections. Whether\u00a0<\/span><span class=\"NormalTextRun SCXW23070019 BCX0\">you&#8217;re<\/span><span class=\"NormalTextRun SCXW23070019 BCX0\">\u00a0preparing for a transition or want to understand your practice&#8217;s worth, this episode offers valuable insights for any business owner.<\/span><\/span><span class=\"EOP Selected SCXW23070019 BCX0\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/div><div>\u00a0<\/div><div>Have questions or ideas for Hunter and Judson? Reach out at <a href=\"https:\/\/www.cainwatters.com\/wealthpodcast\/\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #33cccc;\">cainwatters.com\/wealthpodcast<\/span><\/a>.<\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1d13cb27 libsyn elementor-widget elementor-widget-shortcode\" data-id=\"1d13cb27\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"shortcode.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-shortcode\"><iframe title=\"Embed Player\" src=\"https:\/\/play.libsyn.com\/embed\/episode\/id\/42058095\/height\/128\/theme\/modern\/size\/standard\/thumbnail\/yes\/custom-color\/0c2340\/time-start\/00:00:00\/playlist-height\/200\/direction\/backward\/download\/yes\/font-color\/FFFFFF\" height=\"128\" width=\"100%\" scrolling=\"no\" allowfullscreen=\"\" webkitallowfullscreen=\"true\" mozallowfullscreen=\"true\" oallowfullscreen=\"true\" msallowfullscreen=\"true\" style=\"border-width: medium; border-style: none; border-color: currentcolor; border-image: none;\"><\/iframe><\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-13ec9fb9 elementor-widget elementor-widget-heading\" data-id=\"13ec9fb9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">WHAT YOU\u2019LL LEARN<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3c46e646 elementor-icon-list--layout-traditional elementor-list-item-link-full_width elementor-widget elementor-widget-icon-list\" data-id=\"3c46e646\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"icon-list.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul class=\"elementor-icon-list-items\">\n\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-circle\" viewBox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M256 8C119 8 8 119 8 256s111 248 248 248 248-111 248-248S393 8 256 8z\"><\/path><\/svg>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">The critical role of overhead in practice valuation <\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-circle\" viewBox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M256 8C119 8 8 119 8 256s111 248 248 248 248-111 248-248S393 8 256 8z\"><\/path><\/svg>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">How cash flow affects a practice's worth <\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-circle\" viewBox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M256 8C119 8 8 119 8 256s111 248 248 248 248-111 248-248S393 8 256 8z\"><\/path><\/svg>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Differences in specialty valuations <\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-circle\" viewBox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M256 8C119 8 8 119 8 256s111 248 248 248 248-111 248-248S393 8 256 8z\"><\/path><\/svg>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Importance of clean financial accounting <\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-circle\" viewBox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M256 8C119 8 8 119 8 256s111 248 248 248 248-111 248-248S393 8 256 8z\"><\/path><\/svg>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Preparing your practice for a future valuation <\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4a03a260 elementor-widget elementor-widget-heading\" data-id=\"4a03a260\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Questions Answered in this Episode<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-601a1633 elementor-widget elementor-widget-text-editor\" data-id=\"601a1633\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><b><span data-contrast=\"auto\">How does overhead impact practice value?\u00a0<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Overhead impacts profitability, and profitability drives value.\u00a0Managing overhead can lead to significant valuation differences,\u00a0impacting\u00a0both practice worth and retirement planning.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><b><span data-contrast=\"auto\">What&#8217;s\u00a0unique about orthodontic practice valuations?\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Contracts receivable in orthodontic practices\u00a0deliver\u00a0unique value, differing from other specialties.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p><p><b><span data-contrast=\"auto\">How can practice owners prepare for a valuation?\u00a0<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Ensure clean financials, manage overhead, and understand market factors.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5d7b9020 elementor-widget elementor-widget-heading\" data-id=\"5d7b9020\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Key TakEaways<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f13de16 elementor-icon-list--layout-traditional elementor-list-item-link-full_width elementor-widget elementor-widget-icon-list\" data-id=\"f13de16\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"icon-list.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul class=\"elementor-icon-list-items\">\n\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"3 4 18 14\" fill=\"currentColor\" aria-hidden=\"true\"><path d=\"M9.55 17.2a1.2 1.2 0 0 1-.85-.35l-4.9-4.9a1.2 1.2 0 1 1 1.7-1.7l4.03 4.03 9-9a1.2 1.2 0 1 1 1.7 1.7l-9.85 9.87a1.2 1.2 0 0 1-.83.35z\"><\/path><\/svg>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Overhead impacts valuation significantly <\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"3 4 18 14\" fill=\"currentColor\" aria-hidden=\"true\"><path d=\"M9.55 17.2a1.2 1.2 0 0 1-.85-.35l-4.9-4.9a1.2 1.2 0 1 1 1.7-1.7l4.03 4.03 9-9a1.2 1.2 0 1 1 1.7 1.7l-9.85 9.87a1.2 1.2 0 0 1-.83.35z\"><\/path><\/svg>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Orthodontic practices have unique valuation factors <\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"3 4 18 14\" fill=\"currentColor\" aria-hidden=\"true\"><path d=\"M9.55 17.2a1.2 1.2 0 0 1-.85-.35l-4.9-4.9a1.2 1.2 0 1 1 1.7-1.7l4.03 4.03 9-9a1.2 1.2 0 1 1 1.7 1.7l-9.85 9.87a1.2 1.2 0 0 1-.83.35z\"><\/path><\/svg>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Clean financials are crucial for accurate valuation <\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"3 4 18 14\" fill=\"currentColor\" aria-hidden=\"true\"><path d=\"M9.55 17.2a1.2 1.2 0 0 1-.85-.35l-4.9-4.9a1.2 1.2 0 1 1 1.7-1.7l4.03 4.03 9-9a1.2 1.2 0 1 1 1.7 1.7l-9.85 9.87a1.2 1.2 0 0 1-.83.35z\"><\/path><\/svg>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Preparing early can increase practice value <\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4e8476f0 elementor-widget elementor-widget-heading\" data-id=\"4e8476f0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Who's this episode for?<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-58086d0c elementor-icon-list--layout-traditional elementor-list-item-link-full_width elementor-widget elementor-widget-icon-list\" data-id=\"58086d0c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"icon-list.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul class=\"elementor-icon-list-items\">\n\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"3 4 18 14\" fill=\"currentColor\" aria-hidden=\"true\"><path d=\"M9.55 17.2a1.2 1.2 0 0 1-.85-.35l-4.9-4.9a1.2 1.2 0 1 1 1.7-1.7l4.03 4.03 9-9a1.2 1.2 0 1 1 1.7 1.7l-9.85 9.87a1.2 1.2 0 0 1-.83.35z\"><\/path><\/svg>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Business owners considering a practice sale or transition <\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"3 4 18 14\" fill=\"currentColor\" aria-hidden=\"true\"><path d=\"M9.55 17.2a1.2 1.2 0 0 1-.85-.35l-4.9-4.9a1.2 1.2 0 1 1 1.7-1.7l4.03 4.03 9-9a1.2 1.2 0 1 1 1.7 1.7l-9.85 9.87a1.2 1.2 0 0 1-.83.35z\"><\/path><\/svg>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Dental professionals seeking insights into practice value <\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"3 4 18 14\" fill=\"currentColor\" aria-hidden=\"true\"><path d=\"M9.55 17.2a1.2 1.2 0 0 1-.85-.35l-4.9-4.9a1.2 1.2 0 1 1 1.7-1.7l4.03 4.03 9-9a1.2 1.2 0 1 1 1.7 1.7l-9.85 9.87a1.2 1.2 0 0 1-.83.35z\"><\/path><\/svg>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Owners preparing for retirement <\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"3 4 18 14\" fill=\"currentColor\" aria-hidden=\"true\"><path d=\"M9.55 17.2a1.2 1.2 0 0 1-.85-.35l-4.9-4.9a1.2 1.2 0 1 1 1.7-1.7l4.03 4.03 9-9a1.2 1.2 0 1 1 1.7 1.7l-9.85 9.87a1.2 1.2 0 0 1-.83.35z\"><\/path><\/svg>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Practice real estate owners <\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"3 4 18 14\" fill=\"currentColor\" aria-hidden=\"true\"><path d=\"M9.55 17.2a1.2 1.2 0 0 1-.85-.35l-4.9-4.9a1.2 1.2 0 1 1 1.7-1.7l4.03 4.03 9-9a1.2 1.2 0 1 1 1.7 1.7l-9.85 9.87a1.2 1.2 0 0 1-.83.35z\"><\/path><\/svg>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Anyone interested in understanding valuations <\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5267b572 elementor-widget elementor-widget-heading\" data-id=\"5267b572\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">ABOUT THE HOSTS<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-297ef3d6 elementor-widget elementor-widget-text-editor\" data-id=\"297ef3d6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"color: #003366;\"><a style=\"color: #003366;\" href=\"https:\/\/www.cainwatters.com\/hunter-satterfield\/\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline;\"><strong>Hunter Satterfield &#8211; CPA &amp; Partner<\/strong><\/span><\/a><\/span><\/p><ul><li>Financial Advisor with Cain Watters &amp; Associates since 2007<\/li><li>Chief Investment Officer<\/li><\/ul><p><span style=\"color: #003366;\"><a style=\"color: #003366;\" href=\"https:\/\/www.cainwatters.com\/judson-crawford\/\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline;\"><strong>Judson Crawford &#8211; CPA &amp; Partner<\/strong><\/span><\/a><\/span><\/p><ul><li>Financial Advisor with Cain Watters &amp; Associates since 2004<\/li><li>Public speaker, New associate mentor, Marketing Committee member<\/li><\/ul><p>Reach Hunter and Judson here: <a href=\"https:\/\/www.cainwatters.com\/wealthpodcast\/\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #33cccc;\">cainwatters.com\/wealthpodcast\/<\/span><\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2ebf99d7 elementor-widget elementor-widget-heading\" data-id=\"2ebf99d7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">About the show<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7a24bec2 elementor-widget elementor-widget-text-editor\" data-id=\"7a24bec2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The Accumulating Wealth Podcast helps business owners and professionals make smarter financial decisions through insights on tax strategy, investing, and long-term wealth planning.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-98361e elementor-widget elementor-widget-heading\" data-id=\"98361e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Additional Resources<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-29bfdce1 elementor-widget elementor-widget-n-accordion\" data-id=\"29bfdce1\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;default_state&quot;:&quot;all_collapsed&quot;,&quot;max_items_expended&quot;:&quot;multiple&quot;,&quot;n_accordion_animation_duration&quot;:{&quot;unit&quot;:&quot;ms&quot;,&quot;size&quot;:400,&quot;sizes&quot;:[]}}\" data-widget_type=\"nested-accordion.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"e-n-accordion\" aria-label=\"Accordion. Open links with Enter or Space, close with Escape, and navigate with Arrow Keys\">\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-7000\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"1\" tabindex=\"0\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-7000\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Podcast video <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div class=\"has_ae_slider elementor-element elementor-element-5af25c6f e-con-full e-flex ae-bg-gallery-type-default e-con e-child\" role=\"region\" aria-labelledby=\"e-n-accordion-item-7000\" data-id=\"5af25c6f\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-64443d58 elementor-widget elementor-widget-text-editor\" data-id=\"64443d58\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li><a href=\"https:\/\/youtu.be\/52QsYnA3OJo\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration-line: underline; color: #33cccc;\">Podcast Video<\/span><\/a><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-7001\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"2\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-7001\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Full transcript <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div class=\"has_ae_slider elementor-element elementor-element-2d77de34 e-con-full e-flex ae-bg-gallery-type-default e-con e-child\" role=\"region\" aria-labelledby=\"e-n-accordion-item-7001\" data-id=\"2d77de34\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-3ca16ead elementor-widget elementor-widget-text-editor\" data-id=\"3ca16ead\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span data-contrast=\"auto\">Welcome to the Accumulating Wealth podcast. I&#8217;m Christy Ratcliff. And I&#8217;m Judson Crawford. We&#8217;re CPAs, wealth advisors, and partners at Cain Watters and Associates, a financial services firm here to help business owners navigate the decisions they face every day. And if you can&#8217;t tell Hunter is not with me today, but I&#8217;ve got my sidekick Christy, as you can also tell.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">And no, we&#8217;re not talking about divorce again. But today we are talking about overhead and how it directly impacts the value of your practice.\u00a0So,\u00a0Christy&#8217;s back to help me out because this number can cause a massive swing in what the business is worth and frankly, what your retirement plan looks like.\u00a0So,\u00a0let&#8217;s go. Let&#8217;s do it.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Okay, Christy, so if you&#8217;re listening to this then it&#8217;s likely that the podcast we just did together with Hunter about divorce valuations was just released. And as we were going through that, we started to talk\u00a0about\u00a0just the businesses that you value and talking about kind of the swings in those values.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">And\u00a0so,\u00a0we went back and looked at some numbers and thought, &#8220;You know what? This is valuable enough that we should talk about it.&#8221; Yeah. I mean, this is my life day after day. What practices are worth, what people\u00a0think practices\u00a0are worth. And there can be a disconnect\u00a0in\u00a0those two.\u00a0So,\u00a0we&#8217;ll go back to the facts.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">So\u00a0basically,\u00a0what you&#8217;re saying is we&#8217;re validating your life by doing a podcast on what you do every day. Oh, it makes me feel so good. This has\u00a0to\u00a0feel good. So good. This has\u00a0to\u00a0feel good.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Okay, so what we&#8217;ve done, guys and again if you have only listened to Christy and you don&#8217;t know who she is she&#8217;s the managing partner for NDP Transitions and 7 Pillars, which basically are two partner companies that deal with all of our transitions that our clients go through, whether that be doctor to doctor or whether that be to a private equity or DSO. Correct. Okay?<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">And so, Christy is a certified valuation analyst, a CVA. And\u00a0so,\u00a0she does know this stuff inside and out. And if you have never listened to Christy or Transition Talk or seen her speak on the road, you&#8217;re about to be blessed with some wisdom, okay? Oh, man. High expectations. You have very high expectations.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Okay, so what we did is we went back to valuations that you and your team actually have done, right? Yes. We&#8217;re not taking averages from somebody else. We are looking back, and we did basically back through 2024. Yep. Okay?\u00a0So\u00a0valuations\u00a0done\u00a0from basically yesterday through 2024.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">And we just broke these down for our three biggest segments, which happen to be GPs, general practitioners, orthodontists and pediatric dentists. And we can\u00a0mention\u00a0our other surgical parts because we do that as well. But just because those are the biggest numbers, we kind of broke those down. Yep. Okay?<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">So,\u00a0one of the reasons we got into this is when we have clients that come in and we&#8217;re not facing a situation like an actual sale or a divorce, we talk about practice valuations, but a lot of times we do so in very roundabout ways. Okay?<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">And what that often ends up looking like is, &#8220;You know what? You&#8217;re an orthodontist, and so our average orthodontist sells for 80% to 85% of collections. We&#8217;re\u00a0going to\u00a0put your practice valuation in your personal financial statement as 80% of\u00a0your\u00a0last\u00a0year of collections.&#8221; And we\u00a0move\u00a0on. And I think that&#8217;s, for the most part, okay. Yeah. Right?<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">I mean, I think for planning purposes, I mean, for some of your clients, we&#8217;re talking 10, 15, 20 years out It&#8217;s a huge part of your retirement, so not plugging something in would be a mistake. That&#8217;s right.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">But what that average what we know is that is just an average. And what we have empirical data on is that average doesn&#8217;t swing by just a couple percent. No. Right? That average swings by a lot more than that, and we&#8217;re\u00a0going to\u00a0discuss that.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">So,\u00a0let&#8217;s take a step back here and talk a little bit about when I am going to sell my house, they go out and they look at a bunch of houses that are closer to mine, and they say, &#8220;These houses\u00a0valued at\u00a0this,&#8221; so your house values at that. Yep. Is that how you basically have to do it with these practices?<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">No. I mean, I wish. It probably would make it easier. Yeah. But no. I mean, unfortunately, if most practices are private practices. All these valuations we&#8217;re talking about today are doctor-to-doctor sales, so they&#8217;re private valuations.\u00a0So\u00a0there&#8217;s no one database like the MLS here, where all house sales are listed.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">So,\u00a0we don&#8217;t really have\u00a0the transparency. Even if we have the\u00a0value\u00a0something sold at, we don&#8217;t know what, how that practice differs from the one we&#8217;re looking at, right? And so those market comps are way less reliable. And\u00a0so\u00a0we don&#8217;t do that. What we look at is cash flow and risk, and that&#8217;s how we judge the valuation of each one.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">So,\u00a0when you say there&#8217;s a wild swing or a greater swing, it&#8217;s because the cash flow and the risk factors of a practice, a GP practice in California, are probably\u00a0very different than a similar practice in Virginia, right? And\u00a0so\u00a0we really have to look at those on an individual basis.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Okay.\u00a0So,\u00a0cash flow. And if you&#8217;ve ever been to our practice transition seminar, which by the way happens twice a year, and you should go to it if you\u00a0want to\u00a0know how to value a practice or bring an associate in. You&#8217;ll hear me. You will hear Christy. Talking about the cash flow of a practice, when we boil it down to what you guys are looking at, what cash flow are you looking at in a practice?<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">We are looking at the cash flow, the average cash flow typically of the last two to three years, and we are calculating your overhead or profit based on not running anything through, right? So not your one-time expenses, not your personal expenses, not your discretionary expenses, but your true operating cost of running your business over that time period.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Okay. Producer Erin just threw her phone at me.\u00a0I didn&#8217;t do anything, but I guess I deserved it.\u00a0So,\u00a0what we&#8217;re saying here is that you&#8217;re adding back&#8230; So, when you look at a valuation, just talk about this really quickly, when we take a client&#8217;s financials, typically we like to break it down where it&#8217;s like collections, direct cost, fixed cost, net income, and then we try to pull out a lot of the\u00a0doctor\u00a0costs. But for you guys, you have to\u00a0have to\u00a0get a lot more granular, right?<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Oh, absolutely. I mean, a good financial-\u00a0the Cain Watters financials\u00a0has\u00a0that\u00a0doctor section there at the bottom. But we know if we look through meals and entertainment or office supplies or even your salary cost, right? You might have your kids or your spouse on the payroll. All of those costs are truly not operational, right?<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">So,\u00a0we will dive through all of those upper expenses that may be in your more fixed indirect section, and we&#8217;re\u00a0going to\u00a0pull those out to kind of get to that next level of true overhead of the practice.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">So that is one of the things that takes a lot of time when Christy and her team do that, is they are getting really granular and it is to your benefit, right? Because they&#8217;re getting to the actual cost of doing the dentistry in\u00a0a practice.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Okay, and so what we end up getting to\u00a0is\u00a0sort of\u00a0the net\u00a0income. So here we&#8217;ve got three different types of practices that we&#8217;re\u00a0going to\u00a0focus on today. Let&#8217;s talk a little bit about what kind of profit we&#8217;re looking\u00a0at. And by the way, these numbers are all supported not only by-\u00a0what we&#8217;re talking about today is just the averages that we see in our actual valuations done. These track amazingly well with our Ortho Report, our Pediatric Report, and our\u00a0<\/span><i><span data-contrast=\"auto\">How Does Your Practice\u00a0Compare?<\/span><\/i><span data-contrast=\"auto\">\u00a0Report.\u00a0So,\u00a0tell me a little bit about what we see when we look at these types of practices.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Yeah. When we looked at this group of practices, right? And I&#8217;ll also say the majority of these are partnerships. But these percentages really would kind of continue on&#8211; the percentages are the percentages. But we looked at ortho practices, like you said, pediatric and GPs. If we focus on ortho, the average profit for our ortho practices that we did valuations on during this time period was about 43%. And that resulted, right?<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">But that span was roughly in between 30% as a low and 51% as a high, right?\u00a0So,\u00a0if we talk about being able to put just, like you said, &#8220;Hey, 80% in collections. That&#8217;s what the value of a practice is,&#8221; that is not true for the\u00a030% low and the 51% high. Those two practices, with those varying profit\u00a0margins,\u00a0are\u00a0going to\u00a0have very different values, okay?<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">But the average of the ones we looked at was about 43%. That resulted in an average valuation as a percentage of collections of 84%, okay? So right in line with\u00a0what you would\u00a0&#8211;\u00a0standard put in your consult book. But the range that we saw based on those two profits, right, 30% low, 51% high of net profit resulted in a valuation anywhere from 64% of collections to 96%, okay?<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">And\u00a0so,\u00a0if you&#8217;re an ortho listening, if I gave you a valuation of 64%, you would probably be very shocked by that because you&#8217;ve heard it should be in the 80% to 90% simply because you&#8217;re an ortho. And\u00a0so,\u00a0I think for me, what I know about this is that your overhead matters, right?<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">And the low overhead practices are going to get\u00a0those higher\u00a0valuations. And the one that was 64%, I don&#8217;t have all the individual stats, but my gut is that the one that was lower had a higher overhead percentage than the others that had the higher value.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Yeah, and I think, we talk about overhead a lot.\u00a0And\u00a0look, sometimes even though we all would like to make more money, sometimes it becomes less of a priority for a practice where statistically they may have a lower overhead than their peers, but it works financially for them.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">And\u00a0so,\u00a0it&#8217;s kind of like, what&#8217;s not broke, don&#8217;t fix it. Yep. But what we&#8217;re talking about here when we&#8217;re talking about a range of valuations that has a swing of 34%, we&#8217;re talking about real dollars that will affect your financial plan long term. And\u00a0so,\u00a0we&#8217;ll come back to\u00a0what those differences are.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Let&#8217;s move on to pediatrics.\u00a0So,\u00a0we talked a little bit about the ranges. What are our averages for pediatrics\u00a0and then, averages again in valuations?<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Yeah.\u00a0So,\u00a0the average profit for this group of practices was about 53%, right?\u00a0So\u00a0the inverse of that, that 47% overhead. And the value as a percentage of collections was about 79%.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">So\u00a0lower\u00a0than ortho, but still pretty high. And if the range of profit margin was anywhere from 38% to 62%, so again,\u00a0wide\u00a0range of profitability in this group of practices. And that resulted in valuations of about 64% of collections to, again, 98% of collections\u00a0on\u00a0the high end.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">So again, I have heard everything. I take calls all the time, and I hear that\u00a0a pediatric\u00a0practice shouldn&#8217;t\u00a0value\u00a0at over 75% of collections. It has Medicare except it doesn&#8217;t matter, right?\u00a0It matters, but it is primarily a result of that change in overhead.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">If we look at the GP practices, the average profit there was about 47%. So again, kind of inverse is that overhead, and the value was around 78% was that value. So again, if we look at those GPs clearly coming in slightly lower, but they&#8217;re all pretty in line, right? When we look at those overheads, all those overheads are kind of roughly in that same range, which\u00a0kind of\u00a0puts that value in the same range as well.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Yeah. Now, when we talk about some of these numbers I\u00a0want to\u00a0give a little bit of warning in advance. We&#8217;re\u00a0going to\u00a0be talking about average collections in these practices that are\u00a0going to\u00a0sound really high, okay? And a lot of the\u00a0reason\u00a0for that\u00a0is\u00a0that we are&#8211; A lot of the transitions that you\u00a0do\u00a0are going from multi-doctor to higher multi-doctor\u00a0practices\u00a0right?\u00a0<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">We obviously do a lot of valuations for\u00a0a one-doctor practice individually, but we do a lot more that are like one-doctor going to two, two-doctor going to three, and so forth, right? Yeah.\u00a0So\u00a0we&#8217;re talking about multi-doctor practices here. But these percentages, they really stay true whether you&#8217;re a one-doctor practice or a five-doctor practice. Yep. Okay?<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">\u00a0So, our collection ranges, interestingly enough, on all three of these individual types of practices were very close. Right? They basically range from pediatric at $3.75\u00a0million up\u00a0to the average GP valued at almost $4 million, $3.98 million. Okay?\u00a0<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">And we talked about the difference in net income, all right? Being again, the lowest in ortho and then the highest in pediatrics, all right? Well, it&#8217;s interesting though because even though ortho has the lowest overhead, they have the highest value as a percentage of collections.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">So,\u00a0I think we need to talk about that a little bit because what we&#8217;re saying is, &#8220;hey, cash flow is everything in evaluation, but hey, ortho, you make actually less money than your peers, but you&#8217;re\u00a0going to\u00a0get more for your business.&#8221;<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Yeah.\u00a0So,\u00a0I mean, the common answer, and kind of from a\u00a0\u201cwhat exists in the market,\u201d\u00a0right? The supply and demand, there&#8217;s typically less orthodontic practices for sale, and so they&#8217;ll value more because there&#8217;s more buyers looking. I think really what&#8217;s driving this though is really contracts receivable. It&#8217;s the one unique thing that ortho has that no other specialty has. It is that amount that exists that is for future billing, right?<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">So,\u00a0if I buy and buy into this ortho practice, I know that there&#8217;s a contract receivable balance that I&#8217;m going to get over the next 18, 24, 36 months. And that adds extra value. That&#8217;s something that doesn&#8217;t exist in any other\u00a0financials.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">It&#8217;s literally like you&#8217;re buying a savings account with it, right? Work still has to be done. Patients have to be seen. But as long as you do those things, that money is almost guaranteed to come in. The best example of when we saw this was during the pandemic. When our GP and pediatric and oral surgery and\u00a0perio\u00a0practices shut down, the cash flow essentially stopped. Yep. Right?<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">When our ortho practices stopped down, their collections went down a little bit, but they were still collecting money throughout that entire shutdown. Yeah, absolutely. And that&#8217;s because of contracts receivable. 100%.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">And I think that this is where I think if you&#8217;re an orthodontic practice owner, you have to understand that the value- the premium value that an orthodontic practice can get is a result of a healthy orthodontic practice with\u00a0a good\u00a0contracts receivable and a healthy overhead, right?<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">If I have an orthodontic practice that has- I have all prepaids, my production is declining, that practice isn&#8217;t going to get the premium that you expect to get from others.\u00a0So,\u00a0I really think that&#8217;s important to understand because there are certainly companies out there and individuals that just assume because it&#8217;s ortho, this high premium exists. And to be honest, you&#8217;re\u00a0going to\u00a0have a hard time finding a buyer because you&#8217;re\u00a0going to\u00a0have a hard time finding a bank that&#8217;s\u00a0going to\u00a0want to\u00a0do that.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">So,\u00a0we talked about the high end. The lowest as a percentage was actually- and this is lowest as a percentage as far as net profit and also obviously then therefore as a percentage, the value as a percentage of collections was our GP.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">So,\u00a0let&#8217;s talk a little bit about again, maybe outside of just average profit, why is it that, maybe a GP practice is a little bit- why\u00a0they may\u00a0be a little bit lower? Is it just net profit, or is it also because there&#8217;s more GPs? You know, what are the other factors that go into it?<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Yeah, I think the GP is probably there&#8217;s a wider\u00a0range of the type\u00a0of general practice, right? We have some general practices that are really all doctor production. Maybe they&#8217;re more cosmetic in nature. Those present more risk than\u00a0a heavy\u00a0hygiene practice. Maybe it&#8217;s all one doctor. One\u00a0doctor&#8217;s\u00a0like a super producer. The others aren&#8217;t as much.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">So,\u00a0I think when you look at a GP and why there might be variance, it has to do with those other risk factors outside of profit. It&#8217;s more maybe production mix or where it&#8217;s located or the equipment and kind of technology. Those other factors are probably what is\u00a0going to\u00a0pull that down. And I think that average is lower simply because there&#8217;s a\u00a0wider range of GPs. Yep.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">So then as we&#8217;ve talked about or as you kind of went over, depending on what type of practice you are, in both ortho and GP, there was about a 30% of collections spread between valuation. Then in GP, it was actually 40% spread. That&#8217;s a large number. Right? So\u00a0again,\u00a0when we&#8217;re talking about valuations that we&#8217;re looking at, let&#8217;s just-\u00a0our average valuation, let&#8217;s just round it off to $3 million. We&#8217;re talking about basically somewhere between $1.2 and $1.3 million difference on a valuation.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Yeah. It&#8217;s a huge difference, especially if we talk about that asset at the end versus retirement, right? So, when I look at this it&#8217;s, is it\u00a0going to\u00a0be easy to get your practice from a 60% overhead to a 40% overhead? Sure, yeah. That&#8217;s probably really challenging. But that&#8217;s not what I think makes the difference, right?<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">It&#8217;s\u00a0the 60% to\u00a0the 55%. Like, every\u00a0percentage of\u00a0difference that you can lower your overhead, right, all things else being equal, is a huge amount from a valuation perspective to you. And again, we&#8217;re talking about these big numbers, but that delta and that magnitude is the same even for that one-doctor practice that&#8217;s maybe doing $1.5 million, right? Like, that delta is still just as valuable as this is to these bigger practices.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">That&#8217;s right. And I think that again the takeaway from this is that overhead matters in every situation from cash flow, but we just want our clients to understand what the true value of their practice really is.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">And one thing we should note here, all of the valuations that we&#8217;re discussing in this context today, they&#8217;re doctor-to-doctor sales. Yes. Right? Doctor to doctor.\u00a0<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">So, again, we talked about earlier that you&#8217;re the managing partner over two different businesses. These are doctor to doctor Would you say, without getting into all the nuts and bolts because it&#8217;s very complicated, is this the same way it&#8217;s valued if you were looking at a sale to private equity?<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">They&#8217;re looking at cash flow. They call it EBITDA, but they&#8217;re looking at cash flow, and they&#8217;re also looking at risk, right? The difference in those valuations,\u00a0clearly\u00a0they&#8217;re larger numbers but they know that they have you as an owner, right? That are\u00a0going to\u00a0be there. When we&#8217;re talking doctor to doctor in a partnership, yes, as the doctor&#8217;s saying, but you&#8217;re really relying on individuals, and so there&#8217;s a bigger risk there, and those valuations are typically lower.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">So,\u00a0there&#8217;s other factors that go into it, but at the end of the day, the cash flow or EBITDA of your practice matters, and then the risk of that goes along with it. So yeah, I mean, I think for me it&#8217;s cash flow matters, but being educated at any point in your career about what the expectation would be from a valuation of your practice because as life happens, whether it&#8217;s divorce or something else or you just, are wanting to sell it, understanding and knowing before you go into a valuation process and not just hearing, 85%, 75% of collections because yours could vary dramatically on either side of that. And so that shock is probably one of the harder things for people to get over.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">So if somebody is preparing themselves for getting their practice valued or they want to understand more about what their practice value is, what are some of the tips you would say, like, as I go into this valuation or how can maybe I help myself out if I know, hey, I&#8217;m bringing in this associate next year, so I know that in a couple years I&#8217;m going to have a value of my practice. What are some of the things I should be thinking about?<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">If you don&#8217;t have a good handle on your accounting, if your financials aren&#8217;t clean, that&#8217;s the number one thing you need to do, right? Valuation, we&#8217;re\u00a0going to\u00a0be looking back one, two, three years, and so having good, clean financials that you understand is critical.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">If there&#8217;s any meat on the bone there from an overhead perspective, if you&#8217;re not a member of an ELITE or somewhere where you can kind of try to trim. Even if you don&#8217;t have a large category that&#8217;s out of line, those half percents and one percents you can gain as you look\u00a0down\u00a0your financials is critical.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">So,\u00a0I would say if you&#8217;re two years down the road, 1.)\u00a0have a plan, understand what that looks like, but then 2.)\u00a0really look at your numbers and make sure you understand your business and start educating yourself on what that valuation process looks like.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Another thing that a lot of our clients have as part of their bigger picture is many of our clients own their dental building. Yep. Right? And many\u00a0times,\u00a0if you are a-\u00a0especially if you&#8217;re a one-doctor practice or if you went in with your partner and bought this building you may have set your rent based on maybe some tax planning, maybe on how much the ended debt amount is.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">What are some of the factors to think about if you&#8217;re going into this sale, whether you\u00a0want to\u00a0sell the building or not, what are some of the things you may need to know or look into related to your building?<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Absolutely. If you own your building and you own your practice 100%, when you pay yourself rent, it&#8217;s just one pocket to the next. When you bring on a new partner and let&#8217;s say they don&#8217;t buy your building, now that practice is paying you rent, but you don&#8217;t own 100% of that practice. And\u00a0so\u00a0what we really have to account for in the valuation, and just honestly from a fair partnership perspective, is really ensuring the rent you&#8217;re paying is fair market value.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">If you&#8217;ve never had to do that, you probably have no idea. I\u00a0would\u00a0suggest you ask some colleagues if they lease their building\u00a0and\u00a0they&#8217;re within your vicinity, what their lease rate is. You can talk to a commercial real estate agent. There are some publicly available websites you can go look at just to start understanding what a feel for that is and understanding that once you make that partnership, your mortgage may be X, but you can only charge yourself Y, right? And so that delta there sometimes is hard for people, so just starting to think about that early is important.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Well, it&#8217;s interesting timing because tomorrow morning we&#8217;re\u00a0going to\u00a0have somewhere\u00a0around 100 clients and associates and spouses show up at our offices tomorrow for our practice transition seminar which I mentioned earlier is something we do twice a year, and it&#8217;s something that you&#8217;re intimately involved with every time we do that.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">What are some of the things, like if I were to say, &#8220;Why should I attend this meeting?&#8221; What are some of the things that people should be attending this meeting if they&#8217;re thinking about what?<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Partnerships are a work marriage. And I think this seminar does an incredible job of talking about the various facets. Is there a business piece? How you split the money, how you make decisions kind of how the entity structure is set, 100%. Those are incredibly important.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">But there&#8217;s also the other side of the partnership, which is how are you\u00a0going to\u00a0work together? What&#8217;s important when you&#8217;re looking for a partner or you&#8217;re deciding to become a partner as a buyer?<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">And I think this overall seminar really touches on all of those pieces and creates a roadmap because if you&#8217;ve never thought about this and you&#8217;ve never created a partnership, it can be super overwhelming. And\u00a0so,\u00a0I think laying out the roadmap, how it works, and I think we do a really good job of explaining why we do what we do, which is really important for you to understand. I think it&#8217;s just\u00a0an incredible asset.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Yeah, and my biggest recommendation is don&#8217;t go to this seminar too late. No. Right? You\u00a0have to\u00a0go early. Yeah. It is not inappropriate to go to this seminar if you haven&#8217;t even brought in that associate that you may be selling to in the future. Yeah. The knowledge there is the biggest key piece and knowing that is going to make bringing in that associate and the conversations with that associate and everything more valuable. So once again, we do that twice a year.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Christy,\u00a0also\u00a0give\u00a0a little bit of a shout-out. You do another podcast that talks about these transitions, right? I do. It&#8217;s called &#8220;Transition Talk&#8221;, I do it with our other partner, Charles Loretto, and we talk about all\u00a0things\u00a0transitions.\u00a0So,\u00a0you can listen to any episode. You don&#8217;t have to listen to them in order, but anything from partnerships to valuations to profit and loss to bringing in a partner to walk-away sales, we try to cover the gamut.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Awesome. Last question, and it&#8217;s because we want to bring the hard-hitting questions to our clients on a weekly basis. Who is your favorite &#8220;Accumulating Wealth&#8221; podcast host?\u00a0Junter. That&#8217;s not fair. And Hudson sounds better. Hudson sounds better. We&#8217;ve both been called Hudson way too many times to count. It&#8217;s clearly you. Not\u00a0Junter. Yeah. Well, okay. Phew. Good.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Well, the best way to keep up with this is to subscribe to this podcast. That way, you never have to miss an episode, and you can go back and listen to all the\u00a0others. If you&#8217;re enjoying us so far, leave us a review. If you have a question, comment, or suggestion for a future episode, drop us a line at cainwatters.com\/wealth.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:360}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">We really do answer\u00a0these, and we&#8217;d love to hear from you. Want to learn more about what we do when we&#8217;re not recording these episodes? Visit cainwatters.com to see how we&#8217;re helping over 3,500 clients reach their long-term financial goals.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-7002\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"3\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-7002\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Timestamps <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div class=\"has_ae_slider elementor-element elementor-element-304f40e2 e-con-full e-flex ae-bg-gallery-type-default e-con e-child\" role=\"region\" aria-labelledby=\"e-n-accordion-item-7002\" data-id=\"304f40e2\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-3fa12dc3 elementor-widget elementor-widget-text-editor\" data-id=\"3fa12dc3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><b><span data-contrast=\"none\">00:23<\/span><\/b><span data-contrast=\"none\">\u00a0&#8211; Why Overhead Matters<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><p><b><span data-contrast=\"none\">02:11<\/span><\/b><span data-contrast=\"none\">\u00a0&#8211; Valuation Data Source<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><p><b><span data-contrast=\"none\">02:46<\/span><\/b><span data-contrast=\"none\">\u00a0&#8211; Why Averages Mislead<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><p><b><span data-contrast=\"none\">03:48<\/span><\/b><span data-contrast=\"none\">\u00a0&#8211; How Valuations Work<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><p><b><span data-contrast=\"none\">05:16<\/span><\/b><span data-contrast=\"none\">\u00a0&#8211; Normalizing Financials<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><p><b><span data-contrast=\"none\">07:12<\/span><\/b><span data-contrast=\"none\">\u00a0&#8211; Ortho Profit Range<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><p><b><span data-contrast=\"none\">09:23<\/span><\/b><span data-contrast=\"none\">\u00a0&#8211; Pediatric and GP Benchmarks<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><p><b><span data-contrast=\"none\">11:42<\/span><\/b><span data-contrast=\"none\">\u00a0&#8211; Why Ortho Values Higher<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><p><b><span data-contrast=\"none\">13:52<\/span><\/b><span data-contrast=\"none\">\u00a0&#8211; GP Risk Factors<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><p><b><span data-contrast=\"none\">14:58<\/span><\/b><span data-contrast=\"none\">\u00a0&#8211; Overhead Impact on Retirement<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><p><b><span data-contrast=\"none\">16:22<\/span><\/b><span data-contrast=\"none\">\u00a0&#8211; Doctor vs PE Valuations<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><p><b><span data-contrast=\"none\">17:43<\/span><\/b><span data-contrast=\"none\">\u00a0&#8211; Preparing for Valuation<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><p><b><span data-contrast=\"none\">18:43<\/span><\/b><span data-contrast=\"none\">\u00a0&#8211; Owning the Building<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><p><b><span data-contrast=\"none\">20:01<\/span><\/b><span data-contrast=\"none\">\u00a0&#8211; CWA Practice Transition Seminar<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><p><b><span data-contrast=\"none\">21:34<\/span><\/b><span data-contrast=\"none\">\u00a0&#8211; Transition Talk Podcast Resource<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t<div class=\"has_ae_slider elementor-element elementor-element-500e1ef0 e-flex e-con-boxed ae-bg-gallery-type-default e-con e-parent\" data-id=\"500e1ef0\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-3dec0fe8 elementor-widget elementor-widget-text-editor\" data-id=\"3dec0fe8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Have questions or ideas for Hunter and Judson? Reach out at\u00a0<a style=\"background-color: #00295b;\" href=\"https:\/\/www.cainwatters.com\/wealthpodcast\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: bold; line-height: inherit;\"><span style=\"text-decoration-line: underline; color: #33cccc;\">cainwatters.com\/wealth<\/span><\/span><\/a>. Don\u2019t miss an episode, subscribe and leave the guys a review on Apple Podcast, Spotify, or wherever you listen.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Understanding and managing overhead can significantly impact your practice&#8217;s value. In this episode of the Accumulating Wealth podcast, Judson Crawford\u00a0joins Christy Ratcliff from\u00a0NDP\u00a0and\u00a07 Pillars to dive deep into a\u00a0crucial aspect of practice valuations: overhead. They break down how cash flow and risk factors can significantly affect dental practice valuations\u00a0and\u00a0share insights into how practice valuations are [&hellip;]<\/p>\n","protected":false},"author":56,"featured_media":12751,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_ppma_block_editor_authors":""},"categories":[44,41],"tags":[],"ppma_author":[172],"class_list":["post-12749","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-wealth-podcast","category-featured"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What\u2019s Your Practice Really Worth? - Ep. 296 | Cain Watters<\/title>\n<meta name=\"description\" content=\"What\u2019s Your Practice Really Worth? \u2013 Ep. 296 of the Accumulating Wealth Podcast with Special Guest Christy Ratcliff.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.cainwatters.com\/digitalblogs\/wealth-podcast-ep-296\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What\u2019s Your Practice Really Worth? - Ep. 296 | Cain Watters\" \/>\n<meta property=\"og:description\" content=\"What\u2019s Your Practice Really Worth? \u2013 Ep. 296 of the Accumulating Wealth Podcast with Special Guest Christy Ratcliff.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.cainwatters.com\/digitalblogs\/wealth-podcast-ep-296\/\" \/>\n<meta property=\"og:site_name\" content=\"Cain Watters Blog\" \/>\n<meta property=\"article:published_time\" content=\"2026-07-14T12:00:10+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-09-16T17:43:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.cainwatters.com\/digitalblogs\/wp-content\/uploads\/sites\/2\/2026\/07\/AW-Guest-Template.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"628\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Hunter Satterfield\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Hunter Satterfield\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"43 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.cainwatters.com\\\/digitalblogs\\\/wealth-podcast-ep-296\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.cainwatters.com\\\/digitalblogs\\\/wealth-podcast-ep-296\\\/\"},\"author\":{\"name\":\"Hunter Satterfield\",\"@id\":\"https:\\\/\\\/www.cainwatters.com\\\/digitalblogs\\\/#\\\/schema\\\/person\\\/fd79cde66dccf85097c8dcd13a945b00\"},\"headline\":\"What\u2019s Your Practice Really Worth? 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