Selling Multiple Dental Practice Locations
Multi-location practice sales command significant premiums over solo practices. DSOs and private equity pay 6-10x EBITDA for established groups versus 4-6x for individual practices.
Portfolio Valuation
| Metric | Solo Practice | 3-Location Group |
|---|---|---|
| Revenue Multiple | 0.65x - 0.85x | 0.85x - 1.1x |
| EBITDA Multiple | 4x - 6x | 6x - 10x |
| Buyer Pool | Individual dentists | DSOs, PE groups |
Sale Structures
Portfolio Sale
- Sell all locations together
- Highest valuation
- Single transaction
Staged Sales
- Sell locations individually
- Lower total value
- More flexibility
Roll-Up and Sell
- Partner with DSO to acquire more
- Create larger platform
- Equity participation
Due Diligence Challenges
- Each location separate evaluation
- Consolidated financials required
- Staff across locations
- Lease assignments multiple
Conclusion
Multi-location practices offer significant value premiums. Prepare consolidated financials and consider DSO buyers for optimal outcomes.
Selling multiple locations? Contact DentalBridge.