The new financial year has brought with it the implementation of some important fiscal policy shifts, the effects of which will take some time to measure. Larger-scale dental practices and laboratories are likely to feel the burn of higher operating, staffing and materials costs most keenly. Consequently, the whole dental market will be watching with interest as a renowned, large-scale dental group purportedly readies for a big sale.
While multiples as high as the 17x achieved pre-COVID are not on the cards, should a successful large-scale sale come to pass, private equity will be watching with interest what multiple a couple of these big groups achieve. Aspirations are said to be currently set between 10-11x EBITDA, which it should be understood is after the cost of their central function(s) have been costed in. Attainment of an EBITDA multiple lower than 10x would be a disappointment for all practice owners due to the ripple effect across the market.
The dental practice as a valuable asset is not in question. However, a devalued, high-profile group could set a precedent that would cause other buyers to question high multiples on individual acquisitions and/or smaller groups. This would have a cascading effect which would lower all transactions; even your two surgery NHS practice selling to another dentist. As with a lot of markets, a lot of the sequential pricing is set by what is happening at the top of the market.
Reasons for optimism
Based on all the signs in 2024-25, despite concerns, the dental market has started to spring back with gusto potentially expedited by changes to Business Asset Disposal Relief (BADR). In 2025-26, the dental mergers and acquisitions (M&A) market is expected to remain active, with private equity-backed corporate buyers continuing their strategic and selective re-entry into the dental market. There will be a continued focus on practices with potential for an increase in private provision due to financial restrictions on NHS-focused practices, and difficulties some practices have had recruiting and meeting contractual obligations.
However, contrary to some misconceptions, the presence of an NHS contract still offers a safety net and is still seen as an asset by buyers. This interest is unlikely to disappear with NHS England, though only time will tell. At the moment, the delivery of UDAs, and the recruitment of NHS dentists is still on the rise, and has recently started to look almost as healthy as it did before COVID-19.[i]
Independent groups and owner-operator first-time buyers are expected to maintain their appetite for acquisitions across all practice types. This is likely to persist over the next year as interest rates stabilise and successful integration and divestment periods are observed. The slack between corporates and independent owner-operators has been enthusiastically filled by micro-consolidators, who have the means to borrow at competitive rates from high-street lenders and offer very favourable terms to vendors. Commercial banks are enthusiastically financing transactions, while the private credit market continues to deploy capital.
While continued issues with recruitment are expected, especially in rural and coastal areas, recently announced initiatives to streamline the Performers List Validation by Experience (PLVE) & Overseas Registration Examination (ORE) processes may offer some relief. The GDC has recently announced the introduction of additional exam dates for overseas dentists to receive full accreditation to practise in the UK.
In other news, the market share for private dentistry is expected to grow in the UK and beyond. The global cosmetic dentistry market size was valued at USD 29.50 billion in 2024. Now at USD 32.36 billion in 2025 the market is projected to grow to USD 76.33 billion by 2032.[ii] The global dental prosthetics market was estimated at USD 9.10 billion in 2024 and is expected to grow to USD 15.87 billion by 2034.[iii]
Resilient dental sector
Overall, the global dental market, currently valued at around USD 44.33 billion in 2025 is expected to reach around USD 121.36 billion by 2034,[iv] and the global dental equipment market is expected to rise from USD 12.71 billion in 2025 to around USD 22.1 billion by 2034.[v]
For advice on growing the value of your dental practice, you need look no further than the specialist dental teams at Dental Elite. With 15 years in business, and over 1,000 successful transactions under their belt, the experienced brokers, finance specialists, sales progression teams and recruitment consultants provide a bespoke service to get you on track for a sale that works for you.
The dental sector is currently considered to be a safe bet for lenders, and continues to be resilient, despite continued concerns about the rising cost of treatment for patients under financial stress. That has to be something to be optimistic about.
For more information on Dental Elite visit www.dentalelite.co.uk, email info@dentalelite.co.uk or call 01788 545 900
Author:
Luke Moore is one of the Founders and Directors of Dental Elite and has overseen well in excess of 750 practice sales and valuations. With over 19 years working in the dental industry, Luke has extensive knowledge in both dental practice transfers and recruitment and understands the complexities of NHS and Private practices.
[i] Dental statistics – England 2023/24. NHSBSA August 2024. Available at: https://nhsbsa-opendata.s3.eu-west-2.amazonaws.com/dental/dental_narrative_2023_24_v001.html Accessed March 2025
[ii] Cosmetic Dentistry Market Size, Share & Industry Analysis, By Type. Fortune Business Insights. March 2025. Available at: https://www.fortunebusinessinsights.com/industry-reports/cosmetic-dentistry-market-100223. Accessed March 2025
[iii] Global Dental Prosthetics Market Overview. Market Research Future. 2022. Available at: https://www.marketresearchfuture.com/reports/dental-prosthetics-market-2905 Accessed March 2025
[iv] Dental Market Size, Trends, Shares & Companies (2024 – 2034). Towards Healthcare. January 2025. Available at: https://www.towardshealthcare.com/insights/dental-market-sizing Accessed March 2025
[v] Dental Equipment Market Size, Companies & Research Insight (2023 – 2034). Towards Healthcare. January 2025. Available at: https://www.towardshealthcare.com/insights/dental-equipment-market-sizing. Accessed March 2025
