Dental practice buyers remain highly motivated, but they are more informed than ever. If you’re thinking about selling, it’s essential to understand today’s dental practice market, grasp the buyer landscape, and separate fact from fiction.
Dispelling the Myths
You don’t have to sell to a corporate group if you don’t want to. There are plenty of qualified private buyers looking for the right opportunity. However, corporate buyers might be the right fit if:
- You want to continue practicing for at least 5+ years after the sale.
- Your practice generates $5M+ in collections with strong profitability.
- You are in a location with a limited buyer pool and are willing to stay on post-sale.
Private Buyer Trends
- There are many financially and clinically qualified associate dentists looking to buy practices, especially those generating up to $4M in revenue.
- Due to the rise of corporate and multi-location practices, associates have access to high-paying jobs. This makes them more selective, as they are less likely to buy smaller practices that would reduce their income.
- The most important factors for private buyers include location, number of operatories, profitability, quality of equipment and technology, facility condition, and procedures referred out.
Corporate Buyer Trends
- There are fewer active corporate buyers than in previous years due to economic conditions.
- Most are focused on larger practices with 6+ operatories and $2M+ in revenue.
- Their top priorities are Adjusted EBITDA (true profit), the seller’s willingness to work post-sale, the number of operatories, and proximity to other locations.
What This Means for Sellers
The New England market continues to offer strong opportunities for practice owners, but the key to a successful transition is understanding which type of buyer is the best fit for your goals. Whether you’re planning to sell in the near future or just want to understand your options, now is the time to assess your practice’s value and prepare strategically.
Rosen Dental Transitions specializes in market-driven valuations and tailored transition strategies. Let’s discuss how to position your practice for the best outcome.
