The Real Answer to "What Is My Practice Worth?" Is More Complex Than a Multiple.
What Drives Dental Practice Value
Active patient count, new patient flow, retention rates, and demographics.
Typical Multiples by Practice Type
| Practice Type | Collections Multiple | EBITDA Multiple |
|---|---|---|
| Solo General Practice | 1.5x – 2.2x | 4x – 7x |
| Multi-Doctor General | 1.8x – 2.5x | 5x – 8x |
| Specialty (Ortho, Pedo, OS) | 2.0x – 3.0x | 6x – 10x |
| Multi-Location Group | 2.2x – 3.5x | 7x – 12x |
| Cosmetic / High-Revenue | 2.0x – 3.0x | 6x – 10x |
- Strong and growing EBITDA with clear upward trajectory
- Diversified payer mix (not over-reliant on one insurance plan)
- Modern technology and updated facilities
- Strong associate or hygienist team (not owner-dependent)
- Proven patient acquisition systems and marketing ROI
- Long-term lease or owned real estate in desirable location
- High patient retention and recall rates
- Clean financials with no deferred maintenance
- Declining revenue or shrinking patient base
- Owner-dependent production (no associate capacity)
- Aging equipment or facility requiring capital investment
- Concentrated payer mix (one plan = 30%+ of revenue)
- Short-term or unfavorable lease terms
- Staff turnover or HR compliance issues
- Deferred maintenance or pending regulatory concerns
- Inconsistent or unclear financial records
Frequently Asked Questions
Most dental practices sell for 1.5x to 3.0x annual collections, depending on size, profitability, specialty, location, and buyer type. However, this is a simplification — two practices with identical collections can have vastly different values based on their EBITDA, growth trajectory, and operational strength. A proper valuation looks at the full picture.
EBITDA multiples for dental practices typically range from 4x to 12x, depending on practice size, growth rate, and buyer type. Solo practices selling to private buyers see 4-7x. Multi-location groups selling to DSOs or PE firms can command 7-12x or higher. The multiple reflects the buyer’s confidence in future earnings stability and growth.
The most impactful levers are: increasing EBITDA (reducing unnecessary overhead, growing revenue), reducing owner-dependence (building associate capacity), diversifying your payer mix, investing in technology, and cleaning up your financials. Most owners can significantly increase their valuation with 12-24 months of strategic preparation. Our Advisory Program is designed for exactly this.
A preliminary valuation can be completed in 1-2 weeks with access to your financial records. A comprehensive valuation that includes market analysis, buyer landscape assessment, and strategic positioning typically takes 3-4 weeks. Our complimentary valuation provides a clear range and actionable insights within days.
Significantly. DSOs typically value practices on EBITDA multiples (6-12x), while private buyers often use collections multiples (1.5-3x). DSOs also factor in strategic value — your location, patient demographics, and growth potential within their platform. This is why the same practice can receive dramatically different offers from different buyer types.
Absolutely. Understanding your current value gives you a baseline to measure growth against, identifies areas to improve, and helps you plan your timeline. Many owners are surprised — sometimes pleasantly, sometimes not — by their actual market value. Knowledge is leverage, whether you sell in 1 year or 5.