Are private equity firms buying dental practices?

Yes, private equity has been one of the most active acquirers of dental practices for years, typically through Dental Service Organizations (DSOs) that own the business side while licensed dentists own and deliver the clinical care. The appeal is classic PE: recurring, insurance-reimbursed demand, a highly fragmented market of independent offices, and clear economies of scale in purchasing, billing, and marketing.

Well-run practices generally trade at roughly 4.5x-8.0x EBITDA, or about 2.5x-5.0x SDE for smaller owner-operated offices. The biggest value levers are size and growth, how much production depends on the selling dentist versus associates, a strong hygiene-recall base, specialty mix such as ortho, oral surgery, or perio, and a healthy payor mix that is not overly concentrated in low-fee plans.

Deal structure usually mirrors other PE transactions: 60-80% cash at close with the balance as equity rollover into the DSO and sometimes an earnout. Selling dentists commonly stay on clinically for a transition or longer, and the rolled equity offers a potential second payout when the DSO is later sold.

DealSeam is not a traditional business broker; we introduce practice owners to qualified DSO and private equity buyers where there is a fit, with our success fee paid by the buyer so sellers pay nothing. We never guarantee a buyer or a specific price.