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What should the overhead percentage be for a general practice?

Overhead expenses should be 50% to 55% of annual gross collections for a well run general dental practice if you do not include the doctor's clinical and management compensation. Too many profit and loss reports fail to recognize the practice owner's clinical compensation which should be 25% of annual gross collections (which is what it would cost if you had to hire an associate to do all of the clinical work in a practice); then you should add another 5% of annual gross collections as management compensation (which is what it would cost if you hired a manager to operate the practice). When you recognize the clinical and management compensation as an overhead expense, the overhead percentage should be 80% to 85% of annual gross collections for a well run general dental practice. This leaves a 15% to 20% passive profit margin for this practice, which would be considered ideal. See Less

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Client Testimonials

"I worked with my AFTCO Analyst on a practice where she represented a deceased dentist. My AFTCO Analyst did an amazing job in selling the practice in a timely manner. She is extremely knowledgeable about all aspects of a dental practice acquisition. I would recommend my AFTCO Analyst to anyone who wanted to purchase or sell a dental practice."

Michael L. Greenbaum, D.D.S.
Great Neck, NY

"My AFTCO Analyst was very personal and attentive to the needs and negations of both parties. He was very instrumental in the process, I had a lot of questions in which he took his time to answer or if he did not know the answer would get back in contact with me very quickly after he found out. I would definitely recommend working with him. My first impression of my AFTCO Analyst was that he looked very young and he was just another broker trying to make a sale, that was not the case at all, he is very knowledgeable and guided me through the transition process better than some of these brokers who have way more years in the field. Thank you very much my AFTCO Analyst and I look forward to working with you again and buying more practices."

Martial I. LaVant, D.D.S.
Glendale, AZ

"My AFTCO Analyst was totally professional in evaluating the value of my practice. After I agreed to list the practice for sale, he brought several well qualified candidates in to talk to me about acquiring my practice. Ultimately, the two dentists that ended up acquiring the practice couldn't have been a better fit. The negotiations went smoothly and ultimately I couldn't have been happier with the final outcome. I would definitely refer colleagues to AFTCO for the high quality service that they provide."

Jerome M. Usheroff, D.D.S.
Chicago, IL

"My AFTCO Analyst's professional and genuine interest in my practice transition made the process very easy. I felt very fortunate to have his guidance throughout the entire process. I would recommend my AFTCO Analyst highly."

John S. Taylor, D.D.S.
Henderson, TX