What percentage of its original cost does used dental equipment retain?
Secondary-market analyses show equipment in the 0 to 5 year range typically retains roughly 35 to 70% of original acquisition cost, while equipment older than 10 years often retains only 10 to 25%. Condition, verified through inspection and a documented condition grade, can move a specific item above or below those ranges.
Why doesn’t my CPA’s depreciation schedule reflect equipment value?
Because tax depreciation is an accounting convention, not a market price. A $45,000 A-dec operatory straight-lined over seven years can sit near $3,200 on the books while still commanding substantial resale value. Credible appraisals use dealer quotes, auction results, and reseller data instead, which is why book value and market value routinely diverge.
Does brand affect dental equipment value?
Yes, significantly. Premium manufacturers such as A-dec and Sirona retain more value in the secondary market than lower-tier brands, and technology generation matters as well: current software and imaging capabilities support value, while outdated components accelerate depreciation.
How does an appraisal treat built-in dental equipment?
Separately from plug-and-play devices. Operatories, cabinetry, delivery systems, and some imaging units are semi-permanently installed, so credible valuations account for removal and reinstallation costs. Ignoring built-in status can overstate liquidation value, since removing older fixtures may be uneconomic, or understate value in continued use.
Why should equipment be valued separately from goodwill in a practice sale?
Because the sale price must be allocated between tangible assets and intangibles, and rolling equipment into goodwill without analysis weakens both your negotiating position and your tax reporting. A distinct market-based equipment valuation supports the purchase price allocation and future depreciation, instead of relying on a broker’s rule of thumb.