Offices of Dentists
Industry: Offices of Dentists
Naics: 621210
Private Company Multiples
Industry Overview
Dentistry is one of those rare fields that combines essential health services with serious business potential. It's like the backbone of oral health meets the opportunity for entrepreneurial growth.
Let's break it down: People need their teeth, recession or not. That's why dental practices have shown impressive resilience, even when the economy takes a hit. In fact, as health spending and disposable incomes have risen, so has the willingness to invest in both preventative and cosmetic dental care. We're talking about a 2.1% CAGR over the past five years, pushing the industry to a whopping $189.6 billion. And it's not stopping - we're looking at another 1.1% growth in 2024.
Now, here's where it gets interesting for buyers and sellers: consolidation. It's not a new trend, but it's accelerating. Why? Because running a dental practice is getting tougher. Low reimbursements, staff shortages, mountains of paperwork - it's pushing many towards group models. The market's still fragmented, sure, but the landscape is shifting rapidly.
For those considering buying or selling a practice, understand this: we're in a transition period. As we emerge from recent volatility, practices will face ongoing challenges, particularly in staffing. But here's the kicker - dental groups and service organizations are on the rise. They're reshaping how dental care is delivered, and they could pose a real challenge to independent clinics.
Technology is another factor to watch. AI and 3D printing are becoming real tools in dental offices. If you're buying, think about the tech investment you might need to make. If you're selling, consider how your tech assets might boost your valuation.
Looking ahead, we're projecting a 2.9% CAGR over the next five years, potentially hitting $218.9 billion. That's not just growth - that's an opportunity.
For brokers, buyers, and current owners: you're dealing with a field that combines steady demand with evolving business models and technology. It's complex, sure, but get it right, and you're looking at a business that's as much about improving lives as it is about building wealth. That's a rare combination, and it's what makes dentistry such a compelling market right now.
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