The short answer: general dental practices sell for 60% to 75% of annual gross collections in a private sale, which on a $900,000-collections practice puts the range at $540,000 to $675,000; the same practices run 1.2 to 2.5× SDE, while DSO buyers price on EBITDA at 3.5 to 5.5×. The defining constraint comes first, though: in most U.S. states only a licensed dentist may own a practice, so confirm your state's rule before anything else.
Who can actually buy one
Most states restrict practice ownership to licensed dentists, with management-company structures occupying a regulated middle ground that varies state by state. For a dentist, that restriction is an advantage: it caps the buyer pool, keeps private-sale prices below what an open market would set, and makes practices one of the most bankable acquisitions a licensed buyer can make. If you are not a dentist, this is usually the wrong vertical, and the honest move is to say so early; the other industry playbooks cover fields without ownership restrictions.
What dental practices sell for
| Method | Typical figure | Notes |
|---|---|---|
| Percent of collections | 60–75% of gross | The broker-standard rule for private GP sales |
| SDE multiple | 1.2–2.5× | Solo GP private sales |
| EBITDA multiple (DSO buyers) | 3.5–5.5× | On earnings after replacing the selling doctor at market rate |
| Worked example | $900K collections → $540K–$675K | Private-sale range at 60–75% |
What pushes a practice to the top of the 60–75% band: a fee-for-service-heavy payer mix, an active patient count above 1,500, collections growing year over year, hygiene revenue at 28–33% of collections (the dental equivalent of a maintenance-contract base), and a lease with 7+ years remaining. What drags it to the bottom: heavy PPO concentration, flat or declining collections, and aging equipment. Note the DSO trap in reverse: DSO offers look bigger because they price EBITDA after replacing the seller with a market-rate associate, a different earnings base, not a better deal by definition. The general framework is in our valuation guide and SDE vs EBITDA.
The diligence that sets the real price
The asset is the patient base, so audit it like one:
| Metric | The question it answers | Where to verify |
|---|---|---|
| Active patient count | How big is the asset, and how is "active" defined? | Practice management software |
| New-patient flow | Is the base growing or aging out? | Monthly new-patient reports |
| Hygiene recall share | How much revenue recurs on schedule? | Production-by-category reports |
| Payer mix | Who actually pays, and at what rates? | Insurance and fee schedules |
| Seller transition terms | Will patients stay after the handover? | The purchase agreement |
The add-back that decides dental deals
The doctor-replacement cost. If the selling dentist takes $380,000 but a market-rate associate would produce the same clinical work for $175,000, the difference is real earnings, and missing that adjustment is one of the most expensive valuation errors in practice sales.
Financial verification runs the standard due diligence checklist; patients came for the seller, so the transition period's length and structure carries real value in the price.
How a typical practice purchase is financed
Lenders treat dental practices as a preferred category, because collections recur and default rates run low, and SBA 7(a) financing is standard for practice acquisitions. Illustrative structure at the middle of the worked-example range:
| Source | Amount | % of price |
|---|---|---|
| SBA 7(a) loan | $540,000 | 90% |
| Equity injection (total) | $60,000 | 10% |
| of which: standby seller note can cover | up to $30,000 | up to 5% |
| of which: your cash portion | as low as ~$30,000 | ~5% |
The mechanics, injection rules and standby notes included, are in the acquisition financing guide, and the DSCR calculator tests whether a specific practice's cash flow carries the loan.
Check a practice's debt coverage
Where to find dental practices for sale
| Channel | What you find there | How to work it |
|---|---|---|
| Dental-specialty practice brokers | Most of the market; their own listing networks | Brief them on your buy-box; this channel matters more here than in any other vertical |
| General marketplaces | Some inventory | The marketplace comparison |
| Dentist-to-dentist direct | Retiring dentists selling to a colleague they know | Direct outreach is unusually effective |
Evaluating a practice transition?
The free training covers the acquisition playbook end to end, from evaluating recurring revenue to structuring the loan.
Every claim checkable: member closings, self-reported and published unedited.
Frequently asked questions
General practices sell for 60% to 75% of annual gross collections in a private sale, so a $900,000-collections practice prices at roughly $540,000 to $675,000. The same practices run 1.2 to 2.5 times SDE, while DSO buyers price on EBITDA at 3.5 to 5.5 times.
In most U.S. states, only a licensed dentist may own a dental practice, with management-company structures regulated state by state. Verify the rule with your state's dental board before spending anything on diligence.
Top of the range: fee-for-service-heavy payer mix, 1,500+ active patients, growing collections, hygiene revenue at 28 to 33% of collections, and 7+ years left on the lease. Bottom: heavy PPO concentration, flat collections, and aging equipment.
Dental-specialty practice brokers dominate the market and run their own listing networks, so that channel comes first. General marketplaces carry some inventory, and retiring dentists often sell directly to a colleague, which makes direct outreach unusually effective.
Yes. Lenders treat practices as a preferred category because collections recur, and SBA 7(a) financing is standard: a 10% equity injection, about $60,000 on a $600,000 practice, with up to half available as a standby seller note.
Sources
Percent-of-collections range, SDE and DSO EBITDA multiples, value drivers and the doctor-replacement add-back: Dental Practice Insider, Dental Practice Valuation (2026), compiling broker transaction data from AFTCO, ADS Transitions and Henry Schein Practice Transitions, with DSO multiples per Baker Tilly Healthcare. Ownership rules vary by state; verify with the state dental board. SBA structure mechanics: our equity injection guide.
