The short answer: Dental practices typically sell for 2–4× SDE in a private sale, per Acquisition Ace market experience: on $250,000 of SDE that is $500,000 to $1,000,000. DSO buyers price on 3.5–5.5× EBITDA after replacing the doctor at market pay, a different base, not a comparable number. With an SBA 7(a) loan, the 10% injection on total project cost is about $60K on a $600K practice, and up to half can be a standby seller note, so your cash can start near ~$30,000. Dental is among the most SBA-financed purchases there is: lenders trust the cash flow.
What dental practices actually cost
Price scales with the earnings a buyer-dentist can bank, not with chairs or square footage:
| Practice | Collections | SDE | Typical price |
|---|---|---|---|
| Smaller practice | ~$600K | ~$150K | $300K–$600K |
| Typical solo practice | ~$900K | ~$250K | $500K–$1M |
| Larger, multi-op practice | $1.5M+ | ~$400K | $800K–$1.6M |
The old shorthand, pricing at a percentage of collections, still appears in listings, but sold deals settle on earnings. Two practices with identical collections and different overheads are worth very different amounts. Where in the 2–4× band a practice lands depends on the active patient file, hygiene recall share, and payer mix.
How the price is set: the multiple
Private sales price off SDE × a multiple in the 2–4× band. On the typical $250,000-SDE practice:
| Multiple | Implied price | When it applies |
|---|---|---|
| 2× (low) | $500,000 | Aging patient file, PPO-heavy mix, seller-dependent production |
| 3× (middle) | $750,000 | Stable file, decent recall, transferable payer contracts |
| 4× (high) | $1,000,000 | Growing file, strong hygiene recall, fee-for-service weight |
Same earnings, a $500,000 swing, driven by file durability and payer economics. See the sourced ranges on the dental practice multiples data page and the mechanics in valuation.
DSO offers can read a full turn richer than private bids. Read the EBITDA definition and the terms attached before comparing anything.
The down payment and the full capital stack
Under SBA 7(a) rules, a change of ownership needs a minimum 10% equity injection, calculated on the total project cost, the price plus financed fees, not on the loan amount. Up to half of it can be a seller note on full standby, and the injection cannot come from borrowed funds. The worked stack on a $600,000 dental practice:
| Source / use | Amount | % of price |
|---|---|---|
| SBA 7(a) bank loan | $540,000 | 90% |
| Your cash injection | $30,000 | 5% |
| Seller note (full standby) | $30,000 | 5% |
| Purchase price | $600,000 | 100% |
| + Est. closing costs & fees (financed) | ~$25,000 | |
| + Working-capital reserve | $30K–$50K |
The honest cash to close is the ~$30,000 injection plus reserves, not $600K. The injection is calculated on the total project cost including financed fees, and it cannot be borrowed. Lenders like dental for a reason: collections are insurable, recurring, and well documented, which is why 90% financing on a healthy practice is routine.
Does the deal cash-flow?
At $250K SDE (before the buyer-dentist's own draw) and roughly $84K of annual debt service on a $565K financed total, the deal covers comfortably if production holds through transition, which is what the seller's handover terms are for. Check any structure against a DSCR of ~1.15× to 1.25× before you sign anything.
Costs buyers forget
- SBA guarantee & packaging fees, a percentage of the guaranteed amount, usually financed.
- Legal & closing, purchase agreement, entity setup, payer-contract assignments.
- Practice transition costs, the seller's introduction period and any production guarantee.
- Re-credentialing with payers, start early; gaps in network status leak patients immediately.
- Equipment and software capex, aging chairs, imaging, and practice-management migrations are near-term cash.
- Working capital, insurance receivables lag; the buffer carries payroll while claims pay.
Model your dental practice deal end to end
Price, down payment, loan payment, and take-home in one place.
Frequently asked questions
Typically 2–4× SDE in a private sale: $500,000 to $1,000,000 on a $250,000-SDE practice, per Acquisition Ace market experience. DSOs price on 3.5–5.5× EBITDA after replacing the doctor at market compensation, a different earnings base.
An SBA 7(a) purchase needs a 10% equity injection on the total project cost, about $60,000 on a $600,000 practice. Up to half can be a standby seller note, so your own cash can start near $30,000 plus closing costs and working capital.
Not under SBA rules: the 10% injection is mandatory and cannot come from borrowed funds. A standby seller note can cover half of it. True zero-down structures exist only outside SBA, usually with heavy seller financing.
Listings still quote it, but settlements happen on earnings: 2–4× SDE for private sales, EBITDA multiples for DSO deals. Percentage-of-collections describes asking prices, not what sold practices close at.
Sources
- Private-sale SDE range, Acquisition Ace market experience across member transactions; industry context, Dental Practice Insider (2026).
- Multiples, Acquisition Ace dental practice multiples.
- Financing structure & equity injection, SBA 7(a) program; SOP 50 10 8. See our SBA loan guide.
