M&A Insights
Your essential guide to dental industry trends, valuations, and strategic opportunities
Market Pulse
Spring 2026: Conditions Are Favorable for Sellers and Buyers Alike
After two years of rate-driven headwinds, the dental M&A market is entering its most active stretch since 2021. The Federal Reserve's rate normalization cycle — which brought the benchmark rate down from a peak of 5.25–5.50% in mid-2023 — has meaningfully reduced the cost of acquisition financing. Live Oak Bank, one of the leading SBA lenders to dental buyers, reports strong loan pipelines heading into Q2 2026, a signal that individual buyers are back at the table alongside DSOs.
Historically, Q1–Q2 represents peak deal initiation activity in dental M&A. Sellers who begin the advisory process now are typically positioned to close before year-end — capturing full-year financial performance in their trailing twelve-month metrics.
DSO Consolidation Continues — But Selectively
Dental Service Organizations now affiliate with approximately 30% of active dental practices in the United States, up from roughly 10% a decade ago. While headline consolidation numbers remain strong, DSOs have shifted from growth-at-any-cost to strategic, quality-driven acquisitions — prioritizing EBITDA margins above 22%, established patient bases, and hygiene-forward revenue models.
What Practices Are Fetching Right Now
Valuation multiples have stabilized after 2022–2023 compression. The table below reflects market-clearing ranges our team is observing in active transactions as of Q1 2026:
| Practice Profile | EBITDA Multiple | % of Collections |
|---|---|---|
| Solo GP (< $1.5M collections) | 3.5 – 5.0x | 65 – 80% |
| Strong solo GP / 2-location group | 4.5 – 6.5x | 80 – 100% |
| 3–7 location group (DSO target) | 6.0 – 8.5x | 100 – 130% |
| Specialty group (ortho / oral surgery) | 8.0 – 12.0x Premium | 120 – 160% |
| Strategic / platform acquisition | 10.0 – 14.0x | 140%+ |
The Technology Premium Is Real
Practices that have deployed AI-assisted diagnostics (radiograph analysis, caries detection), cloud-based practice management systems, and digital workflow tools are commanding a meaningful premium at closing. The dental practice management software market is valued at $3.2 billion in 2025 and growing at 10.5% annually — buyers view technology adoption as a proxy for operational sophistication and reduced integration risk.
Sources: ADA Health Policy Institute 2024 Dentist Survey; Grand View Research – Dental Services Market Report 2025; Fortune Business Insights – Global Dental Market 2025; Live Oak Bank Healthcare Lending Report; Irving Levin Associates M&A Deals.
Meet Nancy — Your AI-Powered M&A Adviser
Nancy is Wolfson Equity's proprietary AI adviser, built specifically for dental practice owners navigating one of the most important financial decisions of their career. Whether you're two years from exit or simply curious about what your practice is worth today, Nancy delivers instant, personalized guidance rooted in live market intelligence.
Instant Valuation Estimate
Input your collections, EBITDA, and location — Nancy returns a real-time valuation range benchmarked against current market comps and recent closed transactions.
Exit Timing Strategy
Nancy analyzes your practice profile against current buyer appetite and interest rate environment to identify your optimal transaction window.
Deal Structure Guidance
Stock vs. asset, rollover equity, earn-outs — Nancy explains each structure and models the after-tax impact based on your specific situation.
DSO Match Intelligence
Not every DSO fits every practice. Nancy maps your clinical culture, geography, and growth goals to active acquirers who are genuinely aligned with your priorities.
The $500B Transfer Wave
A Generational Shift Is Reshaping the Market
The most consequential trend in dental M&A over the next decade has nothing to do with interest rates or DSO strategy — it's demographics. According to the American Dental Association, more than 40% of practicing dentists in the United States are age 55 or older. Tens of thousands of practices representing hundreds of billions in enterprise value will change hands over the next 8–12 years.
Why Waiting Hurts Value
Many practice owners delay the sale conversation until they're ready to retire. The data tells a different story: practices sold with 3+ years of production growth in the trailing period command 15–25% higher multiples than those showing flat or declining collections. Buyers pay for trajectory, not just history.
The optimal strategy is not to sell when you're tired — it's to engage advisers early enough to build the value that the market will reward. That means addressing staffing redundancies, strengthening hygiene retention, cleaning up the P&L, and documenting clinical systems before any buyer sets eyes on the practice.
Practices that enter the M&A process with two consecutive years of EBITDA margin at or above 22% receive substantially more competitive offers. Small operational improvements made 12–24 months before a sale routinely yield multiples of their cost at closing.
Sources: ADA Health Policy Institute – Dentist Workforce Report 2024; ADEA Annual Dental School Applicant Survey 2024.
Spring M&A Readiness: 5 Moves to Make Now
Whether you're targeting a transaction this year or in three years, these are the highest-ROI actions practice owners can take heading into Q2 2026.
Closed Transaction Spotlight: Specialty Group Acquisition, Southeast U.S.
In Q4 2025, Wolfson Equity advised an orthodontic group operating across four locations in a high-growth suburban corridor. The practice had built a strong Invisalign-forward model with $5.2M in annual collections and EBITDA margins consistently above 28% — exactly the profile that strategic acquirers are competing for.
We ran a structured, competitive process, engaging seven qualified DSO and private-equity buyers simultaneously. The final transaction — with a regional DSO expanding its specialty footprint — closed at a significant premium to initial market indications, with the owner retaining meaningful rollover equity in the acquiring platform to participate in continued upside.
The owner retained clinical autonomy, a full management team, and a meaningful equity stake in the platform — achieving liquidity today without forfeiting participation in tomorrow's growth.
Specialty Spotlight: Orthodontics & Oral Surgery
Why Specialty Commands a Premium — and Who Is Buying
General dentistry M&A has been active for years, but the fastest-moving segment right now is specialty consolidation. Orthodontic groups, oral surgery practices, and periodontal offices are attracting EBITDA multiples that routinely exceed what comparable GP groups fetch — and the gap is widening.
The structural reason is simple: specialty practices generate higher per-procedure revenue, have lower insurance dependency, and carry defensible referral networks that are difficult for new entrants to replicate. DSOs that have already consolidated a GP base are now actively adding specialty "anchors" to create integrated care platforms.
What Specialty Buyers Want in 2026
Strategic acquirers entering specialty M&A in 2026 are looking for practices with:
- Strong GP referral relationships — diversified, not concentrated in 1–2 sources
- Consistent annual revenue of $2M+ per location
- A trained associate who can absorb patient volume post-transition
- Modern digital workflow (3D imaging, treatment planning software)
- Clean real estate position with favorable lease terms
If you operate a specialty practice — even a single-location practice — the current environment may represent a generational valuation opportunity. We encourage you to explore what your practice is worth before the next interest rate cycle shifts buyer economics.
Sources: Grand View Research – Orthodontics Market Report 2025; Mordor Intelligence – Clear Aligner Market 2025; GroupDentistryNow DSO Consolidation Tracker Q4 2025.
Ready to Find Out What Your Practice Is Worth?
Spring is the most active quarter in dental M&A. Whether you are 6 months from a sale or 6 years away, a confidential conversation with our team costs nothing and clarifies everything.
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