Answers/Valuation

What is my dental practice worth?

Quick Answer
A dental practice typically sells for about 4.5x-8.0x EBITDA, or roughly 2.5x-5.0x SDE for smaller owner-dentist practices, and general practices are often benchmarked near 60%-80% of annual collections. On about $500K of adjusted EBITDA that points to roughly $2.25M-$4M. Strong hygiene-driven recurring revenue, a transferable patient base, and modern equipment push you toward the high end.
Last updated: June 2026DealSeam Research

Dentistry is one of the most actively consolidated healthcare verticals, and that demand supports valuations above most small businesses. Established, professionally managed practices are valued on EBITDA at roughly 4.5x-8.0x, while smaller single-dentist practices are usually valued on SDE (seller's discretionary earnings, which adds the owner-dentist's compensation back to profit) at about 2.5x-5.0x. A simple cross-check many buyers use is 60%-80% of trailing annual collections for a general practice, with specialty practices often higher.

Your placement in the range comes down to a few levers. A high share of recurring hygiene revenue, a loyal patient base that stays after the selling dentist leaves, a favorable in-network insurance mix, modern CAD/CAM and imaging equipment, and associates or staff who will remain all argue for the top of the range. Heavy dependence on the owner's personal production, an aging patient list, or deferred equipment upgrades pull the multiple down.

Who buys also moves the number. Dental service organizations (DSOs) and private-equity-backed groups generally pay EBITDA multiples and may structure 60%-80% cash at close with the remainder as equity rollover or an earnout, while an individual dentist buyer typically pays an SDE multiple with bank or SBA financing. DealSeam is not a traditional business broker; where there's a fit, it introduces owners to qualified buyers, and because the buyer pays the success fee, sellers pay nothing.

Related questions

What multiple do dental practices sell for?

Established, professionally managed dental practices typically sell for about 4.5x-8.0x EBITDA. Smaller single-dentist practices are usually valued on SDE at roughly 2.5x-5.0x.

How is a dental practice valued as a percent of collections?

General practices are commonly benchmarked at about 60%-80% of trailing annual collections, with specialty practices often higher. It is a quick cross-check, not a replacement for an earnings-based valuation.

What makes a dental practice sell for more?

Recurring hygiene revenue, a transferable patient base, a favorable insurance mix, modern equipment, and low dependence on the selling dentist's personal production all push the multiple toward the high end.

Do DSOs pay more than individual dentist buyers?

Often, yes. DSOs and PE-backed groups generally pay on an EBITDA basis and can pay a premium for scale, but they may structure part of the price as equity rollover or earnout rather than all cash.

Sources & methodology

  • DealSeam EBITDA Multiples by Industry
  • DealSeam Dental Practice Valuation & Buyer Guide
  • DealSeam Business Valuation Guide

This is general educational information, not legal, tax, or financial advice. Consult a qualified CPA and M&A attorney about your specific situation.

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