Dental Market Watch 2024

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Dental Practice Market Overview:

✓ Practice value and transaction volume continued at or above the highest levels in history in much of the country.

✓ Major metro areas continue to see more Purchasers than Sellers, meaning demand for quality practices remained stronger than available supply.

✓ Despite rising interest rates across the board, dental practice acquisition borrowing costs remained lower than nearly every other type of lending and well below rates seen even ten to fifteen years ago (and beyond).

✓ Some corporate funding slowed, but the appetite for growth continued and is expected to pick back up throughout the upcoming year.

✓ Between favorable financial terms, continued growth in private practice production overall, and additional market constraint due to corporate acquisitions, there may not be a better time to consider transitioning from practice.

Practice

Practice Location: Located in Orange County, California, this practice had been in this location for 32 years. The community is affluent and highly sought-after.

Type of Practice: Up-to-date technology such as digital X-rays, CBCT, and iTero Scanner. FFS and PPO practice with long-term staff and 3 days of hygiene per week.

Sale Details:

The Seller had a deadline for the sale of his practice so that he could begin his specialty program. We received 49 inquiries, most generated from our initial email blast to our Buyer list, plus web searches linking to our website, and local marketing. We quickly had three Buyers ready to make verbal offers on the practice. One Buyer had been looking at a nearby practice and had a great rapport with our selling agent. The Buyer decided to offer over asking price and agreed to a timely closing to sweeten the deal, which the Seller accepted.

Practice Location: Located in Parker, Colorado, this general practice was a growth opportunity, referring out all specialty procedures. This general practice had significant growth potential.

Type of Practice: This general practice is 2,650 sq. ft. with room for additional Ops. Well-trained staff and utilized Dentrix with Dexis digital sensors and Planmeca Panorex.

Asking Price: $1,200,000 Gross Revenue: $1,300,000

Purchase Price: $1,200,000 Property: Leased Condo in medical building

Sale Details: There were 22 listing inquiries from our website and the initial email blast that was sent out on the practice. The Seller was open to DSO and individual Buyers. We marketed to both, and had an offer from a DSO and an individual. The Seller ultimately decided to go with the individual Buyer for full asking price.

Practice Three: West Coast

Leased in a stand-alone building Asking Price: $545,000

Practice Location: Located in Southern Utah, this office has been at this location for 25 years. It is in a rural community with a close-knit staff and team.

Type of Practice: This general practice is 2,650 sq. ft. with room for additional Ops. Well-trained staff and utilized Dentrix with Dexis digital sensors and Planmeca Panorex.

Sale Details: This began as a Practice Valuation for the doctor. The next week the doctor called needing to sell the practice as soon as possible in preparation for their mission. The local Henry Schein Transition Sales Consultant tapped into their network and in less than a week, the office went into contract at full asking price.

Purchase Price: $545,000

Practice Four: East Coast

Property: Leased within a professional complex

Asking Price: $1,118,000

Gross Revenue: $1,412,000

Practice Location: This Southeast Florida dental practice had a long-established PPO/FFS program that operated out of a space within a professional complex.

Type of Practice: The practice utilized Dentrix for their digital radiography and was paperless. With a steady new patient flow, full-time hygiene program, and most specialty procedures referred out of the practice, there was an excellent opportunity to maintain and grow upon acquisition.

Sale Details: Once active, we were able to show the practice more than 20 times within days of listing and subsequently presented multiple offers with an ultimate purchase price well over initial asking. Throughout the process, we were able to secure 100% financing on the practice with a partner lender providing additional funding for working capital and some expenses.

Purchase Price: $1,193,000

Practice Five: East Coast

Practice Location: Located in West Florida, this general practice was a solid restorative crown and bridge practice with practitioners ready for retirement.

Type of Practice: The practice was digitized, utilized Dentrix, and was further equipped with a panorex and laser. With a steady new patient flow, a full-time multi-hygienist run hygiene program, and most specialty procedures referred out of the practice, there was growth potential in the established and nearby accessible patient base.

Sale Details: Setting initial parameters, including the desire to have an Owner-operator Purchaser, the Owners of this practice had the ability to pre-screen and hand select possible transition partners, leading to multiple offers and what the Owners felt was an excellent fit for transition. Working with the purchaser-selected lender, we were able to secure 100% financing on the practice at a competitive rate with additional funding for working capital and the subsequent purchase of the standalone real estate that houses the practice.

Practice Six: East Coast

Property: Leased in a professional building

Asking Price: $900,000

Revenue:

Practice Location: Well-established practice in Westchester, New York, owned by a dentist who has a stellar reputation in the community.

Type of Practice: Fully equipped with advanced technology, including CBCT, CEREC, and scanners. Located in a professional building, this practice is 1,800 square feet with 5 elegantly designed treatment rooms. The practice thrived with a patient base consisting of 60% PPO and 40% FFS.

Sale Details: What set this opportunity apart is the selling doctor’s commitment to stay actively involved for three years post-sale, adding significant value to the buying dentist. This agreement enhanced the transition process and allowed the Buyer to acquire not just a practice, but a seamless continuation of excellence in dental care.

Purchase Price: $900,000

Practice Location: Located in rural Arkansas, this practice has been operating at this location for 30 years. The average staff member had worked there for 15+ years.

Type of Practice: This general practice is 3,056 sq. ft. with no room for additional operatories.

Sale Details: After practice valuation, based on doctor’s desire to continue working, we engaged prospective DSO Buyers. The Seller liked the payout structure and the ability to continue to work and earn without the day-today management responsibilities. Doctor was also very concerned about how his staff would be taken care of and the DSO agreed to retain all employees at current pay.

Practice Location: Plover, Wisconsin –Central Wisconsin

Type of Practice: This General practice is 3,056 sq. ft. with no room for additional Ops.

Sale Details: With year over year rapidly declining revenues, a thorough market analysis was completed for the practice. Results suggested a price higher than presented in an appraisal from a different company but supported by a third. After additional investigation and a proper tangible asset evaluation the asking price was affirmed and the sale completed. While this took extra effort and a further detailed review, securing the fair amount was of paramount importance and was achieved.

Practice Nine: Midwest

Lease in a stand-alone building Asking Price: $650,000

Practice Location: Located in Northwest Indiana, the Owner acquired the practice in 2000, then moved it to its current location. It is a beautiful stand-alone building with great street visibility and parking.

Type of Practice: This general practice is 2,400 sq. ft. with room for one additional Op. The practice utilizes Dentrix with Dexis digital sensors, Gendex Pan and 3shape scanner.

Sale Details: We started by performing a practice valuation for the doctor, who then decided to list the practice. The Henry Schein Transition Consultant utilized his local network to find a Buyer very quickly. The practice was on the market for only 4 months before receiving a full price offer. We then closed in under 60 days.

Purchase Price: $650,000

Transition Overview

The smooth transition of a dental practice is a complex process that involves significantly more than simply finding a Buyer and closing the transaction. Having a trusted transitions advisor to bridge the steps, help avoid potential pitfalls, and maximizing your selling

price through solid advice and sound guidance is crucial to a transaction’s success. Your local Henry Schein Dental Practice Transitions representative will be there to look out for you, and your practice, helping to mind each detail along the way.

Why Choose Us?

✓ We employ more full-time local transitions representatives than any other national company.

✓ We value more practices than any other nationwide transitions organization at over 700 per year.

✓ We provide unmatched transactional experience with over 5,000 dental practices sold.

✓ We deliver over 55 years of continuous and more collective years of experience than any other provider.

✓ We offer the broadest set of transition models from single to multi-doctor, solo to DSO, straight sale to partnership.

✓ We have an Accredited Certified Valuation Analyst (CVA) specifically trained for dental practice valuation.

✓ We maintain an active database with more Purchasers than any other transitions firm.

✓ We leverage the best and broadest of additional services through our Henry Schein family of resources.

✓ We are the only company offering transitions services to be recognized as one of the World’s Most Ethical Companies, a recognition we have earned every year, for the last 13 years.

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