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
What is the best accounting software for dental offices?
QuickBooks Online works best for most dental offices. It handles insurance receivables, integrates with practice management systems, and gives you the reporting flexibility dental practices need.
Read answerHow do 1099 contractors get paid?
You pay contractors the full invoice amount with no taxes withheld. Collect a W-9 before the first payment and track every payment through the year for 1099 reporting.
Read answerHow to do bookkeeping for real estate investors?
Track each property separately so you can see profitability by investment. Keep rental income, expenses, and security deposits organized by property, and maintain clear records that distinguish repairs from capital improvements.
Read answerWhat proof do I need for business expenses?
Keep receipts showing the amount, date, vendor, and what you bought. For meals and travel, also document the business purpose. Bank statements alone won't satisfy the IRS if you're audited.
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 answerWhat is the most overlooked tax deduction?
Business mileage. It's not complicated or obscure. Business owners just don't track it consistently. At the current standard rate, even moderate driving adds up to thousands in missed deductions.
Read answer
