DDSWhat multiple do dental practices sell for?
TUSK Practice Sales describes today’s range as 5x to 9x+ EBITDA and expects it to move toward 4x to 6x. Benesch reports 5-6x for smaller practices and 9-10x for large DSOs, down from 13-16x at the 2019 to 2021 peak. The spread reflects size, quality and buyer type.
These are advisory-firm statements, not transaction databases. Quote them with the publisher and the date, and treat a single multiple as a starting point for the letter of intent.
What is EBITDA in a dental practice valuation?
EBITDA is earnings before interest, taxes, depreciation and amortization. For a dental practice it is usually adjusted: the owner’s own pay is replaced with a market-rate dentist salary, and one-time or personal expenses are removed. The adjusted figure, not reported profit, is what a multiple is applied to.
Because owner-dentists often take income through production and distributions, the adjustment is where valuations are won or lost. Have a CPA review it.
Why do collections matter as well as EBITDA?
Collections, the cash a practice actually receives, show scale and revenue quality before costs are examined. Some smaller sales are quoted as a share of annual collections instead of a multiple of EBITDA. Buyers still cross-check the two, since the same collections can carry very different costs and profit.
Neither measure replaces diligence. Public-record checks and a review of payer mix, staffing and the lease follow.
How much of the price is paid at closing?
TUSK Practice Sales reports DSO offers structured with 60% to 85%+ of the total consideration paid as cash at close. The remainder is typically deferred, rolled into equity or tied to performance. How the price is split changes the buyer’s financing need as much as the headline multiple does.
See financing a practice acquisition and asset versus stock purchase for how structure and tax interact.
Frequently asked questions
Is there one correct valuation method?
No. Methods include EBITDA multiples, collections multiples and discounted cash flow; buyers and lenders often use more than one.
Why are DSO multiples higher than small-practice multiples?
Benesch reports 9-10x for large DSOs and 5-6x for smaller practices. Scale, management depth and buyer type account for much of the gap.
Will multiples keep falling?
TUSK expects ranges to compress toward 4x to 6x over time. That is a forecast, not a published transaction result.
Where can I see practice counts by market?
The dental market data hub covers dentist counts and age; DDSIntel publishes signal activity in aggregate once each release is signed off. Read about signals.
Sources
- TUSK Practice Sales. TUSK Practice Sales Assesses the State of the Dental Industry in Its Q3 2026 Dental Market Report (July 10, 2026). pr.timesenterprise.com.
- Benesch, via Mondaq. Benesch monthly dental and DSO report, July/August 2026. mondaq.com.
Questions or corrections: request a correction. Markdown version: /deal-sourcing/how-dental-practices-are-valued.md.