Key Insights for the Eastern, Central, Mountain & West Regions
The dental practice sales market across the United States continues to show strong performance, reflecting regional nuances that influence buyer preferences and practice valuations. This update provides a closer look at the unique trends shaping the market in each area, helping both buyers and sellers better understand the opportunities and challenges in today’s competitive landscape. Whether it’s optimizing financial health, navigating location-driven demand, or adapting to evolving buyer expectations, the insights shared here aim to support informed decision-making for practice owners.
Eastern Region
The current market conditions for dental practice sales on the East Coast remain strong, particularly in highly populated areas. Buyers are, however, being selective, seeking practices that align with their specific needs and long-term goals. Practices located in prime areas can sell at a premium, especially if they operate on a fee-for-service (FFS) or preferred provider organization (PPO) model. Conversely, practices with suboptimal payer mixes often sell at a significant discount or may struggle to find buyers altogether.
Cash flow is another critical factor. Practices that fail to generate sufficient cash flow to support a potential buyer’s financial requirements face significant challenges in securing a sale. Rising employment costs further strain practice profitability. Many doctors are not adhering to industry-standard benchmarks for compensation, which can erode profitability and deter buyers. Buyers are also closely analyzing practice overhead and revenue trends to assess potential risks and rewards.
In smaller towns, the market is particularly favorable for buyers, with highly profitable practices often including real estate as part of the deal. These practices benefit from less competition, an abundance of patients, and lower overhead costs, enhancing their appeal. To maximize sale potential, sellers should focus on optimizing their practice’s location, payer mix, and financial health. Strategic adjustments to operations and proactive financial management can significantly enhance a practice’s appeal in this competitive market.
Central Region:
Dental practice sales in the Central Market remains active, with trends showing more larger sized practice closings in 2024 in the metro areas. Location, strong cash flow, practices with 5 or more operatories, low overhead, and strong hygiene schedule continues to drive practice sales. These areas and practices consistently draw interest due to their larger patient bases and well-established facilities and services. At the same time, demand for practices in suburban areas surrounding these metro centers is on the rise. These locations are increasingly seen as excellent investment opportunities with high returns. Rural area practices continue to be difficult to close due to the lack of buyers for these areas, but the higher cash flow, reduced competition, and lower costs of living make these affordable entry points and particularly attractive options for younger dentists entering the market that are comfortable in a smaller community.
DSO activity is still strong in the Central U.S., with many groups receiving new funding for 2025. Practices with over $500,000 in EBITDA, where the seller is willing to stay on for 5 years, are seeing strong offers and multipliers of EBITDA. Financial performance remains a critical consideration for today’s savvy buyers. Practices generating over $1,000,000 in annual collections, especially those with strong profit margins, are highly sought after by private buyers. Dental practice financing for private practices remains strong with aggressive rates and a variety of loan options. Many buyers in the central market are buying real estate along with the practice and lenders are offering little to no down payment if the practice cash flow supports it. The pace and volume of sales remain consistent with historical trends, demonstrating the resilience and strength of the dental practice sales market in this region.
Mountain Region:
The dental practice sales market in the Mountain region remains robust, driven by its unique geographic and demographic factors. Buyers are increasingly drawn to suburban areas and mid-sized towns that offer growing patient bases and less competition compared to urban centers. Practices in these regions are particularly attractive to dentists seeking a balanced lifestyle while still enjoying strong business potential. Additionally, the influx of younger families relocating to these areas has further fueled demand for family-focused practices.
Financial performance continues to play a crucial role for buyers in the Mountain region, with practices generating over $750,000 in annual revenue and maintaining profit margins in excess of 35% being the most desirable. While financing remains accessible, buyers are increasingly strategic, looking for practices with a track record of stable growth and opportunities for expansion. Sales in this region reflect the steady demand, but buyers are showing greater interest in practices with established patient retention systems and modernized facilities to accommodate a competitive edge.
Western Region:
The dental practice sales market in the Western region is characterized by its diversity and high competition, particularly in densely populated urban areas. Major metropolitan hubs remain the focal point for buyers, thanks to their well-established infrastructure, proximity to leading healthcare networks, and higher patient volume. However, practices located in high-demand rural areas are also gaining traction, offering buyers lower overhead costs and the opportunity to serve underserved communities.
Buyers in the Western region are especially focused on practices with innovative technology and strong online presences, reflecting the broader tech-savvy culture of this region. Practices generating over $1 million in annual revenue, particularly those with niche specializations like cosmetic or pediatric dentistry, are commanding premium prices. Financing options remain plentiful, but buyers are demonstrating more caution, ensuring they invest in practices with potential for long-term growth. Sales trends show an uptick in demand for turnkey operations, allowing buyers to step into practices with minimal disruption.
