Dental Practice Acquisition & SBA Underwriting Financial Model — Production vs Collections, Owner-Dentist Add-Back, DSCR (Excel + Google Sheets)

Buy a dental practice and underwrite it the way an SBA lender actually will — not the way the broker's production sheet wants you to. This is a lender-ready acquisition model for a single general-dentistry practice, built around the two things that decide a dental deal: how much the practice actually collects (not what it bills), and what it costs to replace the seller's own chair once you own it.

The step every other template skips: production is not collections. Revenue is built bottom-up from the two chairs — FTE dentists times production per dentist, plus the hygiene recall department — to reach gross production. Then the model does what a broker never shows you: it bridges gross production to net collections through PPO / insurance write-offs (ADA 2023: 30-40% of billed fees) and adjustments. On the base case the practice bills $2.54M in production but collects only $1.70M — a 67% collection ratio. Pay a multiple of production and you overpay by the entire write-off.

The honesty-killer: the owner-dentist production replacement. The owner is usually a producing dentist. If you (or your buyer) don't drill, you must re-hire that chair with an associate at ~30% of collections — on top of a practice-manager salary. The model deducts BOTH to reach Adjusted EBITDA and shows the TRUE DSCR (1.53x on the base case) right next to the NAIVE broker-style DSCR (2.33x). The gap is the seller's own production — exactly what separates a financeable dental deal from one that looks great on the broker's sheet and gets repriced at the bank.

What you get:

• Dental Revenue Engine — provider productivity (dentists + hygiene department), the production-to-collections bridge with a live collection ratio, a hygiene recall book with a recurring-revenue lever, a support-to-dentist ratio and a collections-per-dentist capacity check.
• SDE & Valuation — Gross Profit from per-line margins on collections, SDE, the owner-dentist production replacement, Adjusted EBITDA and the price at your SDE multiple (with the implied % of collections and EBITDA multiple).
• SBA 7(a) capital stack — buyer equity + seller note + loan, with a full-standby vs amortizing seller-note toggle that moves DSCR from declined to bankable.
• DSCR & Debt gate — the true DSCR, the naive DSCR, debt yield, hygiene-book coverage (~224% of debt service), and a down-case DSCR of 0.94x when one associate is lost (~22% production shock) — the sector's #1 risk, priced honestly.
• 5-year P&L, Returns & Exit, Dashboard — cash-on-cash, equity multiple, and a DSCR bankability grid across price and rate.
• 3-way profile toggle — General / PPO Family Practice, Fee-for-Service / Boutique (low PPO, higher collection ratio), Group / Multi-Doctor reloads the PPO share & write-off, margins, multiple, working capital and capex.
• 23-page PDF user guide + a Benchmarks & Sources tab with every assumption's range and source.

Honest by design. SDE margin held at a realistic ~34% of collections (per ADA, not inflated); independents priced at ~2.0-2.5x SDE (~65-80% of collections) — the DSO consolidator's 5-11x EBITDA is NOT sold as your return; a solo owner-heavy practice is shown NOT to pencil for a non-dentist buyer once the chair is re-hired; and no IRR is headlined, because on one small deal it is hostage to the exit multiple. Machine-verified: 64 automated checks across three engines, zero errors. Works in Excel and Google Sheets — no macros.

Educational planning tool, not financial, legal, tax or investment advice. Verify the seller's tax returns, production & collections reports, associate employment agreements and your SBA term sheet before relying on any number.