What Is My Dental Practice Actually Worth in Today’s Market?
If you are asking, “What is my dental practice actually worth in today’s market?” you are asking a smarter question than most dentists realize. For years, practice owners have relied on rough estimates based on a percentage of collections. That approach is no longer accurate. Today, buyers, especially DSOs and well-informed private buyers, are looking closely at profitability, not just revenue, when they decide what a practice is worth.
At DDSmatch, we help dentists across Colorado, Wyoming, and North Dakota understand the real, current-market value of their practice before they make any decisions about a sale, a partnership, or a future transition. Through The Trusted Transition Process and the Practice Optimizer Experience, our team walks practice owners through what actually drives value today so they can move forward with clarity instead of guesswork.
This article will address
- How much your dental practice may be worth in today’s market
- What factors increase or decrease practice value
- How EBITDA is used to calculate value
- What multiple dental practices typically sell for
- Who can give you an accurate valuation in Colorado, Wyoming, or North Dakota
How Much Is My Dental Practice Worth?
There is no single number that applies to every dental practice, and any answer that skips straight to a dollar figure without reviewing your financials should be viewed with some caution. What we can tell you is how that number gets calculated in today’s market.
Instead of a flat percentage of collections, practice value is generally calculated as normalized EBITDA multiplied by a valuation multiple. Two practices with identical revenue can end up with very different values depending on their profitability, patient stability, and how well the practice is documented.
To give you a general sense of where practices tend to land:
- Smaller practices under $1 million in collections often see lower valuation multiples
- Mid-size practices between $1 million and $3 million typically fall into a moderate range
- Larger or multi-location practices may command higher multiples
Colorado, Wyoming, and North Dakota each have different buyer pools, and that can shift where your practice lands within these ranges. A practice in a fast-growing Colorado suburb may draw different interest than a well-established practice in a smaller North Dakota community. This is exactly why a professional valuation matters. It replaces guesswork with a number based on your actual practice, not a national average.
What Factors Increase or Decrease a Dental Practice’s Value?
Understanding what moves the needle on your practice’s value is one of the most useful things you can learn before you ever talk to a buyer. Some of these factors are within your control, and knowing which ones matter most can help you prepare with intention rather than react under pressure.
Factors That Can Increase Value
- A strong, consistent EBITDA margin held over several years
- Healthy hygiene production and a well-run recall system
- Multiple providers generating revenue, not just the owner
- A diverse payer mix without heavy reliance on one insurance carrier
- Clean, well-documented financial records
- A stable, trained team with low turnover
- Updated technology and organized day-to-day systems
Factors That Can Decrease Value
- Heavy dependence on the owner for most of the practice’s production
- Declining collections or profitability over recent years
- Inconsistent or undocumented financial records
- High staff turnover
- Outdated equipment or deferred maintenance
- Unfavorable lease terms
None of these factors are permanent. Many can be addressed well before a practice goes to market. Through the Practice Optimizer Experience, DDSmatch helps practice owners identify which of these issues apply to their situation and works with them to correct what can be corrected, often years before a sale is even on the table.
How Is EBITDA Used to Value a Dental Practice?
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It sounds technical, but the concept behind it is simple. EBITDA represents the true operating profit of your practice once certain adjustments are made, giving buyers a clearer picture of what the practice actually generates in cash flow.
Buyers rely on EBITDA instead of collections because collections only tell part of the story. Two practices can bring in the exact same revenue and still have very different profit margins, depending on overhead, staffing costs, and how the practice is run day to day.
A normalized EBITDA calculation typically adjusts for a few common items:
- Owner compensation that is above what a replacement dentist would typically earn
- Personal expenses that are run through the business, such as a vehicle or travel costs
- One-time expenses, like a major equipment purchase or a renovation, that will not recur
Once these adjustments are made, the resulting number gives a much more accurate picture of the practice’s real earning power.
Why EBITDA Matters More Than Collections
This is one of the most common misunderstandings dentists have about their own practice. A practice with lower collections but strong, consistent profitability can be worth more than a larger practice that brings in more revenue but runs on thin margins. If you have been estimating your practice’s worth based on collections alone, this is likely the single biggest gap in your understanding of your practice’s actual value.
What Is the Average Multiple Dental Practices Sell For?
Once EBITDA is calculated, the next step in the formula is applying a valuation multiple. This multiple is not the same for every practice, and it should be treated as a general guide rather than a guarantee.
As a general reference point:
- Smaller practices tend to see lower multiples
- Mid-size practices generally fall into a moderate range
- Larger or multi-location practices may achieve higher multiples
- Specialty practices may see different multiples depending on current buyer demand
It is worth repeating that the multiple your specific practice receives depends heavily on the quality and consistency of your earnings, not simply your size. Two practices with identical revenue can land at very different multiples based on how well the practice has been prepared, documented, and positioned before going to market. This is where working with an experienced transition team makes a real difference, since preparation often has more influence on your final number than the size of your practice alone.
Who Can Give Me an Accurate Dental Practice Valuation in Colorado, Wyoming, or North Dakota?
If you want a real answer to what your practice is worth rather than a rough estimate, you need guidance from people who understand both the dental industry and your local market. This is exactly the role DDSmatch plays for dentists across Colorado, Wyoming, and North Dakota.
As Dental Practice Transition Consultants, we help practice owners move through the valuation process with clarity, using The Trusted Transition Process and the Practice Optimizer Experience to make sure nothing gets overlooked. These frameworks are built to walk you through preparation, valuation, and planning step by step, so you are never left guessing about what comes next.
Beyond valuation guidance, DDSmatch offers a full range of services to support dentists at every stage of a transition, including:
- Dental practice sales
- Associate placement
- Sell-side DSO representation
- Transition planning
- Licensed dental real estate support
Our team, led by Brandon Darcangelo and John Sellyei, brings decades of combined experience in the dental industry, dental real estate, and practice transitions. If you are searching for a Dental Practice Broker in Colorado, Wyoming, or North Dakota, or looking for Dental Practice Valuation Experts who understand your regional market, our team is ready to help you get a clear and accurate picture of where your practice stands today.
Start Understanding Your Dental Practice’s Value With DDSmatch
Understanding your practice’s true value is the first step toward any future decision, whether you are planning to sell soon or simply want to know where you stand. In today’s market, value is built on profitability, preparation, and positioning, not guesswork or outdated rules of thumb.
DDSmatch helps dentists across Colorado, Wyoming, and North Dakota get a clear, accurate answer to the question, “What is my dental practice actually worth in today’s market?” Contact DDSmatch today to begin a confidential conversation about your practice’s value and what your next step could look like.
Site Sources
American Dental Association, Buying or Selling a Dental Practice, Start with an Accurate Valuation
American Dental Association, What Dental Practice Buyers Want