How many times EBITDA is a dental practice worth?
Dental practices typically sell for 3 to 7 times EBITDA, with most transactions landing between 4 and 6 times. The wide range reflects how much the specifics of a practice matter to buyers.
Practice size is the biggest factor. A solo practice doing $500,000 in collections will trade at a lower multiple than a multi-doctor practice doing $3 million. Larger practices attract different buyers, including dental service organizations that pay premium multiples because they’re buying a platform for growth rather than just a patient base.
Specialty matters too. Oral surgery and orthodontic practices often command higher multiples than general dentistry. The specialized skills are harder to replace and revenue per patient tends to be higher.
Owner dependency pushes multiples down. If the practice revenue is entirely tied to one dentist who works 50 hours a week, a buyer is taking on significant risk. Practices where associate dentists handle a meaningful percentage of production are worth more because the revenue continues when the selling owner leaves.
The quality of financial records affects valuation more than owners realize. A buyer or broker can’t pay a premium for profit they can’t verify. When the books are messy or incomplete, buyers assume the worst. They discount their offers or walk away entirely. Working with a bookkeeper who keeps your numbers current and accurate makes a real difference when it comes time to sell.
Normalized EBITDA is what actually gets multiplied. That means adjusting for owner compensation above market rate, personal expenses running through the practice, and one-time costs that won’t continue under new ownership. The difference between reported EBITDA and normalized EBITDA can shift the valuation significantly in either direction.
For medical and dental practices, financial hygiene matters long before you list the practice for sale. Clean, current books speed up due diligence and give buyers confidence in the numbers they’re seeing.
The multiple you’ll actually receive depends on market conditions, buyer competition, and how attractive your practice looks on paper. The range is just a starting point. Everything after that comes down to the specifics of what you’ve built and how well you can document it.
Full-Charge Bookkeeping for Mid-Mo's Businesses
The Next Step:
Get Your Quote
Tell us what you're dealing with. We'll listen, ask a few questions, and give you a straightforward price that meets your expectations.
More Questions
How much should I pay someone to do payroll?
Payroll processing typically costs $40 to $200 per month for small businesses. The price depends on whether you use DIY software, a payroll company, or have a bookkeeper handle it as part of your monthly service.
Read answerHow much does a bookkeeper usually charge in Mid-Missouri?
Most bookkeepers in Mid-Missouri charge $200 to $600 monthly for basic small business services. The actual cost depends on transaction volume, industry complexity, and what's included beyond monthly reconciliation.
Read answerHow many years can a business go without filing taxes?
Technically unlimited. The statute of limitations doesn't start until you file, so there's no point where unfiled returns become safe. The IRS can pursue non-filers indefinitely and penalties compound the longer you wait.
Read answerHow to do bookkeeping for a contractor?
Contractor bookkeeping centers on job costing. Every expense, labor hour, and payment needs to connect to a specific project so you can see which jobs make money and which ones lose.
Read answerHow to do your own bookkeeping for a small business?
DIY bookkeeping requires weekly consistency more than technical skill. The core tasks are categorizing transactions, reconciling accounts, and generating reports. Most owners fail because they let things pile up, not because the work itself is difficult.
Read answerWhat is the deadline to file taxes in Missouri?
Missouri follows federal tax deadlines. Personal income tax returns are due April 15th. S-corps and partnerships file by March 15th. Extensions are available but only extend the filing deadline, not the payment deadline.
Read answer