Current trends in the 2025 dental market

Dental practice sales so far in 2025 at all levels have been influenced by the location, size and nature of the business, as well as who is the active buyer in each turnover segment. The trends to note depend on how different kinds of buyers address their concerns about the business performance post-purchase, and what risks they are and are not willing to take.

Who are the buyers?

Contrary to the common assumption, the vast majority of dental practices are sold not to large groups, but to independent buyers. Representing 79% of the market, these buyers tend to be cash-rich, flexible, and are often able to offer more favourable terms for practices than their corporate counterparts.

Micro-consolidators performed well in 2024-25, and this is expected to continue into the new financial year. Corporate activity softened in 2024 from its peak in 2022/23, during which time they focused on their existing estates. Groups kept an eye on interest rates, and awaited details of the new government’s budget before acting. While the market was at its most uncertain, they were reluctant to operate on the same flexible terms as independents and micro-consolidators. Corporate confidence has grown in recent months in response to lower interest rates, but there is still caution.

Though primarily focused on prime locations, corporates and micro-consolidators are willing to look outside of urban hotspots, provided high performance is demonstrated. This is true whether the practice is mixed or private, because corporates largely de-risk the deal by ensuring the principal is equally invested, and will continue for a period of three to five years post completion.

Sales trends based on turnover

Segment 1 – low turnover

NHS and mixed practices lead the way in terms of stronger multiples in the low-turnover stock, which is typically around £300k or less. Buyers are reassured by guaranteed monthly income from manageable NHS contracts, with a bit of stoke to grow privately, and bank funding is easy to come by.

Small private practices at this level tend to achieve lower multiples, especially where the perception is that the practice has been under-invested, and the USP of the practice has been primarily linked to the outgoing principal dentist.

Segment 2 – mid-tier

The market for mid-level practices, ranging in turnover from about £500k to £1 million, also tends to favour NHS and mixed practice, although private practices at this level in really urban areas often also capture the market. Micro-consolidators enter the mix at the mid-range level where there is potential to expand private business through increasing surgery occupancy, or adding more surgeries, for example. An achievable NHS contract and healthy UDA rate offer additional margins for any buyer looking at the practice within this category, making it worth the investment when it comes to debt serviceability and take home pay.

Multiples for private practices within this middle bracket are still dependent on location, but at this level they present less risk to the potential buyer. The higher yield indicates that there will be more than one high-grossing team member within the practice who can contribute towards income.

Segment 3 – high turnover

The renewed interest by micro-consolidators and groups in NHS practices in the £1 million plus turnover category is largely based on big contracts and strong UDA rates. A contract that has consistently performed gives any buyer coming into the practice the added comfort of a reliable infrastructure and team.

At the high turnover level, the demand for mixed and private practices overtakes interest in NHS practices unless in Central London.

High grossing private practices can increase prices to offset rising costs. Equally, practices can benefit by paying the associates on a check-up basis, using other team members strategically on an internal recharge system to make it more profitable.

The future is bright with a little assistance

Every practice is different, and when you are ready to sell, you will require specifically tailored support to achieve the results you need. With decades of combined specialist dental experience, the whole Dental Elite team uses its collective knowledge to realise your sale, smoothly, simply and professionally.

Dentistry is a very cash-rich market, and recent interest rate drops have given the sector renewed vigour. Within strong sales trends based on scale, practice type and location, there are a great many variables and exceptions. While there is no one-size fits all approach to practice sales, with a little expert guidance you can have a lot more control as you plan your sale.

For more information on Dental Elite visit www.dentalelite.co.uk, email info@dentalelite.co.uk or call 01788 545 900