In this article, Cathy Murphy (Associate Director – Dental at Christie & Co) demystifies asking prices – what they mean and how they are calculated

What is an asking price and why do we have them?

An asking price signals a guide to the level of offers that the agent and seller expect for a business.  For dental businesses, this typically reflects goodwill, fixtures and fittings, and, where relevant, the freehold property. Agents use their experience and comparable sales evidence to recommend a realistic price, which allows sellers to decide whether to proceed with a sale and whether the likely outcome meets their objectives. For buyers, the asking price sets expectations and acts as a starting point for negotiation, helping them assess affordability and avoid pursuing unsuitable opportunities.

How is it calculated?

Setting the right asking price is crucial, as pricing it too low risks the vendor underselling, but too high and the business may struggle to attract buyers, often leading to later reductions. Both outcomes can be avoided through a comprehensive market appraisal by an experienced agent. Asking prices are influenced by a range of factors, including financial performance, reputation, location, lease terms, property value, demand, market conditions and regulatory gradings. Most sectors follow established valuation methodologies based on market norms.

Typically, businesses are valued using the profits method, where a multiple is applied to fair maintainable profit. Central to this is EBITDA (Earnings Before Interest, Tax, Depreciation, Amortisation), which is calculated from pre-tax profit, with adjustments made for non-recurring or personal costs that would not continue under new ownership. Once a sustainable EBITDA is established, a suitable market multiple is applied to determine the asking price. This multiple varies depending on several factors and should be discussed with a specialist agent.

Ultimately, an asking price is not just a number, but a strategic tool designed to position a business correctly in the market. When supported by accurate financial analysis, market evidence and sector expertise, it helps generate interest, encourage competitive bidding and maximise value. Engaging with an experienced agent ensures that the price reflects both current market conditions and the true potential of the business, giving sellers the best possible chance of achieving a successful outcome.

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About this article

To find out more about the sales process, or for a confidential chat about your business options, contact Cathy Murphy at cathy.murphy@christie.com or +44 7756 875 133.

Tags: Christie & Co, practice, sales