A tale of two dentists -- Table

Jun 12, 2012

Practice No.	Cost of practice	Gross collections from practice	Collections cumulative	Cost of management	EBIDA	Debt service & depreciation	Net income	Net margin	Valuation at 10.19%
1	500,000	1,000,000	1,000,000	250,000	250,000	250,000	-250,000	-25%	$2,400,000
2	500,000	1,000,000	2,000,000	250,000	350,000	500,000	-400,000	-20%
3	500,000	1,000,000	3,000,000	300,000	700,000	700,000	-300,000	-10%
4	500,000	1,000,000	4,000,000	300,000	1,000,000	900,000	-200,000	-5%
5	500,000	1,000,000	5,000,000	400,000	1,500,000	1,150,000	-50,000	-1%
6	500,000	1,000,000	6,000,000	400,000	2,000,000	1,400,000	200,000	3%
7	500,000	1,000,000	7,000,000	500,000	2,500,000	1,650,000	350,000	5%
8	500,000	1,000,000	8,000,000	500,000	3,000,000	1,900,000	600,000	8%
9	500,000	1,000,000	9,000,000	600,000	3,500,000	2,150,000	750,000	8%
10	500,000	1,000,000	10,000,000	600,000	4,000,000	2,400,000	1,000,000	10%
11	500,000	1,000,000	11,000,000	700,000	4,500,000	2,150,000	1,650,000	15%
12	500,000	1,000,000	12,000,000	700,000	5,000,000	1,900,000	2,400,000	20%	$24-49,000,000
Cumulative			$78,000,000				$5,750,000

Solo practice	Cost of practice	Gross collections from practice	Collections cumulative	Cost of management	EBIDA	Debt service & depreciation	Net income	Net margin	Valuation at 75% GC
1	500,000	1,000,000	1,000,000	50,000	250,000	200,000	50,000	5%	$750,000
Cumulative		x 12	$12,000,000	600,000	3,000,000	2,400,000	$600,000	5%	$750,000