What's Your Dental Practice Worth? A Plain-English Valuation Guide
Dental practices are selling for 5 to 7 times their annual profit. Whether you're thinking about selling now or just want to know your number, this guide breaks it all down in plain English.
2026 Dental Practice Market Snapshot
5.0x - 7.0x
Profit Multiple (SDE)
5.5x
Average Multiple
+1-2x
DSO Premium
$600K-$2M
Avg Practice Value
How Dental Practices Are Valued
Dental practices are valued based on Seller's Discretionary Earnings (SDE). That's your total profit, plus your salary, plus any personal expenses running through the practice. Think of it as the total cash the business puts in the owner's pocket each year.
A buyer takes your SDE and multiplies it by a number (called the "multiple") to figure out what your practice is worth.
Simple example: Let's say your practice makes $400,000 in SDE. If it sells at a 5.5x multiple, it's worth about $2,200,000.
The higher your SDE and the higher your multiple, the more your practice is worth. The rest of this guide explains what moves that multiple up or down.
What Pushes Your Multiple Higher
- Strong PPO and fee-for-service payer mix, Practices where most patients have PPO insurance or pay out of pocket are the most valuable. Buyers love predictable, higher reimbursement rates.
- Associate dentist on staff, If an associate handles 30-50% of production, the practice isn't dependent on you. That's a big deal to buyers and can add 0.5-1.0x to your multiple.
- 1,500+ active patients, A large, active patient base means steady revenue. Buyers look at your active patient count (seen in last 18 months) as a key health metric.
- Modern, digital equipment, CBCT, digital X-rays, intraoral scanners, and CAD/CAM systems signal a practice that won't need major capital investment after the sale.
- Strong hygiene department, If hygiene produces 30-35% of revenue, that's recurring, predictable income. Buyers value hygiene production heavily.
- Long-term lease in place, A lease with 5+ years remaining (or a renewal option) gives the buyer stability. Short leases scare buyers because the landlord has leverage.
- Clean compliance and licensing, No OSHA violations, up-to-date DEA registration, current state licenses, and proper infection control protocols. Compliance issues kill deals.
- Revenue growth trend, Even modest growth (5-10% per year) signals a healthy practice. Flat or declining revenue pushes your multiple down.
What Brings Your Multiple Down
- Owner-dependent practice, you do 80%+ of the production and there's no associate
- Medicaid-heavy payer mix (over 30% of revenue from Medicaid)
- Old or outdated equipment that will need replacing soon
- Short lease with no renewal option (under 3 years remaining)
- Declining revenue or shrinking patient count over the last 2-3 years
- High staff turnover, especially hygienists and front desk
- Unresolved compliance issues or past board complaints
Not sure where your practice falls?
Our calculator is built for dental practices, it factors in your collections, payer mix, and patient count.
Who Pays the Most for Dental Practices?
Three types of buyers, listed by who typically pays the highest multiples:
Private Equity Groups
6.0x-8.0x SDE. PE firms acquiring platforms or adding to existing dental portfolios. They want practices collecting $1.5M+ with strong teams. Cash at close plus equity rollover.
DSOs (Dental Service Organizations)
5.0x-7.0x SDE. They handle the business side, billing, HR, marketing, while you keep practicing. Most deals include an employment agreement and equity rollover.
Individual Dentists
4.0x-5.0x SDE. Dentists buying their first practice or expanding. Often use SBA loans. Straightforward deals, but lower multiples because they have less capital.
Not sure which buyer type is right for your practice? Book a free call, we'll match you based on your practice size, location, and goals.
How Payer Mix Affects Your Value
Your payer mix, the breakdown of how your patients pay, is one of the single biggest factors in your valuation. Here's how buyers see it:
Real-World Valuation Examples
These are based on typical dental practice sales. Names and locations are changed, but the numbers reflect real market conditions.
$1.1M
Solo GP Practice
$200K SDE. Owner does 90% of production. No associate. Mostly PPO patients. 4 operatories. Older equipment but well-maintained. Sold at 5.5x to an individual dentist buyer.
$2.75M
Group Practice with Associate
$450K SDE. Owner plus one associate. 6 operatories with digital equipment. 2,000+ active patients. Strong hygiene program. Sold at 6.1x to a regional DSO.
$5.2M
Multi-Location Practice
$750K SDE. Two locations with 3 dentists total. CBCT, digital workflow, strong brand. 3,500+ patients. 80% PPO/FFS. Sold at 6.9x to a private equity-backed group.
Want to see where your practice falls in these ranges? Run our free valuation calculator, it takes about 5 minutes.
Common Valuation Mistakes
These are the mistakes we see dentists make most often when trying to figure out what their practice is worth:
Using gross collections instead of SDE, your practice value is based on profit, not revenue
Comparing to a friend's sale without knowing the details, every practice is different
Ignoring the impact of your personal production, if you leave, who does the dentistry?
Assuming a percentage-of-revenue formula is accurate, multiples are based on earnings, not collections
Not accounting for equipment that needs replacing, buyers will discount for deferred maintenance
Overvaluing goodwill without supporting it with patient retention data
Frequently Asked Questions
What is my dental practice worth?
Most dental practices sell for 5.0 to 7.0 times their annual profit (SDE). The average is around 5.5x. Practices with strong PPO patient bases, associate dentists, and modern equipment sell at the top of the range. Use our free valuation calculator for a personalized estimate.
What is SDE and how does it affect my dental practice value?
SDE stands for Seller's Discretionary Earnings. It's your total profit plus your salary and any personal expenses running through the practice. Buyers multiply your SDE by a number (the multiple) to determine your practice value. For example, $400K SDE x 5.5 multiple = $2.2M practice value.
Do DSOs pay more for dental practices than individual buyers?
Yes. DSOs (Dental Service Organizations) typically pay 5.0x-7.0x SDE, while individual dentist buyers pay 4.0x-5.0x. Private equity backed groups may pay 6.0x-8.0x for practices that meet their criteria. The premium comes from economies of scale and lower-cost access to capital.
How does payer mix affect my dental practice valuation?
Payer mix is one of the biggest factors. Practices with mostly PPO and fee-for-service patients command the highest multiples. Medicaid-heavy practices (over 30% Medicaid) typically see a discount of 0.5x-1.0x on their multiple because Medicaid reimbursement rates are lower and less predictable.
How long does it take to sell a dental practice?
Most dental practice sales take 4 to 8 months from listing to close. Practices with clean financials, up-to-date equipment, and a strong associate can close faster. Preparation (cleaning up books, resolving compliance issues) should start 6-12 months before listing.
What's Your Dental Practice Worth?
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