Know what your dental practice is worth, and have an advisor on your side when you sell.

Most dental practices sell for a multiple of earnings (EBITDA) or a percentage of annual collections. In the current market, multiples generally run 5 to 9 times EBITDA for larger, well-run practices, and roughly 60 to 85 percent of annual collections for smaller single-location practices. Advisors expect multiples to compress toward 4 to 6 times over the longer term as the industry matures, so a number you heard two years ago is not a number to rely on now. The exact figure depends on your profitability, location mix, provider retention, and how clean your financials are. A formal valuation is the only way to know your real number. (Industry estimates, 2026.)

From decision to close, a sale typically takes 6 to 12 months, and longer if your books are not deal-ready. Multi-location practices and complex deal structures can run 12 to 18 months. Due diligence is usually the longest single phase at roughly 8 to 12 weeks, and nearly all of it is document production. Practices with clean, consolidated financials and a documented earnings history move faster and hold their price better through diligence, so the preparation work is what shortens the timeline.

A DSO sale can be the right move, but only if you understand the full deal, not just the headline price. DSO offers are commonly structured with 60 to 85 percent or more of the total value paid as cash at close, with the rest tied to equity rollover, earnouts, or continued employment terms. Before you accept, you need clean financials, a real valuation, and a clear picture of what you will actually net after debt, taxes, and rollover.

Usually less than the headline number. DSO deals commonly structure 60 to 85 percent or more of total value as cash at close. The balance comes as equity in the larger group or as earnouts tied to future performance, and both are reduced further by existing practice debt and taxes. Rollover equity is worth what a future recapitalization makes it worth: buyers often expect a recap within 12 to 36 months, while private equity holding periods typically run three to seven years. Modeling your true after-tax, after-debt proceeds before you negotiate is one of the most valuable things an advisor can do for you.

At least two years before you plan to sell, and three to five years is better. Buyers pay more for practices with a clean, documented earnings history, consolidated multi-location reporting, and no financial surprises in diligence. Starting early lets you fix margin and bookkeeping issues on your own timeline instead of scrambling once an offer is on the table.

A broker lists and markets your practice to find a buyer. A financial advisor makes sure your books, valuation, and deal terms are working in your favor before and during that process. Burkland is not a broker and does not list practices for sale. We prepare your financials for diligence, model what different offers really net you, and advise you through negotiation, so you walk in informed rather than reactive.

Expect a serious request. Buyers commonly ask for three to five years of tax returns, monthly profit and loss statements, production reports by provider, and accounts receivable aging. DSO diligence teams are often staffed by people with Big Four accounting backgrounds, and they will rebuild your numbers if your books cannot support them. Having all of it current and consolidated before you take a call is the single cheapest thing you can do to protect your price.