What Multiples Do Dental Practices Sell For?
Dental practices typically sell for 60% to 80% of annual collections. However, multiples vary significantly based on profitability, location, and practice type.
General Dentistry Multiples
| Performance Level | Collections % | EBITDA Multiple |
|---|---|---|
| Top-tier (>40% margin) | 75% - 85% | 6x - 7x |
| Strong (35-40% margin) | 70% - 75% | 5x - 6x |
| Average (30-35% margin) | 65% - 70% | 4x - 5x |
| Below average (<30%) | 55% - 65% | 3x - 4x |
Specialty Practice Multiples
| Specialty | Collections % | EBITDA Multiple |
|---|---|---|
| Orthodontics | 80% - 110% | 7x - 10x |
| Oral Surgery | 80% - 120% | 6x - 10x |
| Endodontics | 70% - 90% | 5x - 7x |
| Periodontics | 65% - 85% | 5x - 7x |
| Pediatric Dentistry | 70% - 95% | 6x - 8x |
Factors That Increase Multiples
- Growing revenue (3-year trend)
- Modern digital equipment
- Strong hygiene program
- Long-term lease (5+ years)
- Desirable location
- Diverse patient base
Factors That Decrease Multiples
- Declining collections
- High overhead (>70%)
- Short lease (<3 years)
- Aging equipment
- Declining patient count
Bottom Line
Use 65% - 75% of collections as baseline for general dentistry. Specialty practices command premiums. Strong profitability and growth trends push multiples higher.
Valuation questions? Contact DentalBridge.