Two dental practices can show the same revenue, the same EBITDA and the same growth trajectory – yet end up with very different valuations.
That gap rarely comes down to the numbers themselves.
From a buyer’s perspective, valuation is driven less by what a practice earned last year and more by how confidently it can perform in the future. The key question is not how big the business is, but how risky it feels to operate once ownership changes.
As Andy Sloan, Managing Director at Agilio Dental, puts it:
Practices that appear strong on paper can quickly lose their appeal when revenue depends too heavily on specific individuals. When decision-making, patient flow or high-value treatment sits with one “hero”, buyers see fragility. If that person steps back, the business may not function in the same way – and that uncertainty is priced in.
By contrast, practices that command premium multiples have structure – predictable income, clear systems and visibility over how patients move through the practice. Performance is consistent, not reliant on memory or superhuman effort. Teams understand their roles and the business continues to operate consistently, even as people change.
This is why growth alone doesn’t guarantee value. Scaling a practice without fixing what sits underneath often amplifies risk rather than reducing it. More clinicians, more sites or more patients layered onto fragile systems can create complexity that buyers are wary of. Sustainable value comes from slowing down at the right moments, strengthening operational foundations and then growing with confidence.
For practice owners, the implication is simple but often overlooked: valuation is shaped long before a business goes to market. The systems, data and behaviours that feel operational today quietly determine how investable the practice will be tomorrow.
This insight is explored in depth in Valuation secrets of dentistry’s next titans, where Andy Sloan shares real acquisition experience and practical guidance on how buyers assess risk, predictability and long-term value in dental practices.