What Buyers Don’t Tell You: 5 Insider Factors That Actually Increase Your Dental Multiple
Discover the insider factors that drive higher valuations for dental practices and how to position your practice for a premium outcome.
The highest multiples aren’t driven by luck—they’re engineered.
Most of the factors that materially increase valuation are operational and controllable, but only if they’re addressed before buyers begin diligence.
If you’re a dental practice owner considering an exit in the next 12–36 months, Evergreen can help you identify the insider factors that buyers actually reward, strengthen your operational profile, and position your practice for a premium outcome—on your terms.
For a confidential valuation and readiness discussion, contact Managing Director, Dr. Azza Diasti-Kennedy: azza@evergreenforfounders.com
Dentists often assume their value comes from revenue, operatories, or equipment.
But private equity evaluates deeper signals—the “quiet indicators” of predictability,
maturity, and scalability.
These five factors consistently increase multiples behind closed doors:
1. Predictable Hygiene Re-Care
A strong hygiene engine with:
- 30–35% production
- High perio adherence
- Strong reactivation
...is one of the most powerful valuation drivers in dentistry.
2. Multi-Year Associate Contracts
Associates secured for 2–3 years dramatically reduce transition risk. Buyers pay premiums for stability.
3. Reduced Low-Fee PPO Exposure
Decreasing or renegotiating PPOs 12–18 months pre-sale:
- Increases margins
- Boosts EBITDA
- Raises the multiple
It’s one of the biggest hidden value levers.
4. A Strong Practice Manager or Office Manager
Buyers pay more for:
- Leadership stability
- Strong administrative systems
- Team continuity
- Less dependence on the owner
An effective manager is worth real money in an acquisition.
5. Month-to-Month Consistency
Buyers value:
- Predictable revenue
- Steady case acceptance
- Efficient scheduling
- Minimal volatility
Predictability = higher valuation.
Additional PE-Attractive Factors
- Digital workflow integration (CBCT, scanners, aligners)
- Strong case acceptance systems
- Healthy culture and low drama
- Consistent clinical documentation
The Insight Most Owners Never Hear
Your valuation is driven far more by predictability and operational maturity than by
collections. Evergreen helps owners strengthen these factors long before going to market—and that’s how founders achieve premium outcomes.
Contact Us
If you’re a dental practice owner evaluating your long-term options, the Evergreen team provides confidential guidance on valuation, timing, and pre-market preparation. We work with founders well in advance of a transaction to reduce risk, enhance predictability, and help practices achieve top-tier multiples.
To explore your valuation drivers and next steps, reach out to Managing Director, Dr. Azza Diasti-Kennedy, azza@evergreenforfounders.com