For many dental professionals, selling a practice represents the culmination of a life’s work. Decades of patient care, team building, and business growth. But when it's time to exit, a question arises that often reveals a gap in preparation: “How can I maximize the value of my practice?” The answer lies in a single, powerful financial metric: EBITDA.

EBITDA is short for Earnings Before Interest, Taxes, Depreciation, and Amortization. And it isn't just a financial buzzword. It’s the figure potential buyers scrutinize most when determining what your practice is worth. A stronger EBITDA not only boosts your sale price, but it translates into a practice that is more attractive, sustainable, and successful, whether or not you're planning to sell in the near future.

What Is EBITDA, and Why It Drives Dental Practice Valuation

EBITDA is a measure of a practice’s operational profitability. In simple terms, it reflects the revenue generated from core dental services after subtracting operating expenses but before accounting for financial and accounting differences like loans or assets.

Buyers,especially DSOs, private equity firms, or individual investors, rely on EBITDA because it presents a cleaner picture of operational strength. It evens out variables and creates a baseline for comparing multiple practices.

Why EBITDA Impacts Sale Valuation

Dental practices are commonly valued using an EBITDA multiple. The higher your EBITDA, the higher your sale price, especially when combined with operational efficiency and growth indicators. For example:

• If your practice's EBITDA is $300,000 and the industry multiple is 5x, the benchmark valuation is $1.5 million.
• If you increase EBITDA to $450,000, that same 5x multiple translates to a sale price of $2.25 million.

That $150,000 in EBITDA improvement can lead to a $750,000 pay-off, all without having to expand or relocate your business.

Key Drivers That Influence Practice EBITDA

Increasing EBITDA requires intentional strategy rooted in both leadership and smart decision-making. Fortune Management has helped thousands of dental professionals transform their practice performance, often unlocking far more than they thought possible. Here are a few factors to examine when preparing to grow your EBITDA:

Optimize Scheduling & Provider Productivity

• Leverage time-blocking strategies to ensure high-value procedures are prioritized.
• Reduce no-shows with automated reminders and better patient communication.
• Maximize hygiene schedules with recall system upgrades and Hygiene Mastery™ strategies.

Improve Case Acceptance Rates

Train your team on patient communication, trust-building, and presenting treatment plans. High case acceptance directly fuels both top-line revenue and EBITDA performance.

Control Overhead While Driving Growth

• Conduct regular expense audits to cut hidden inefficiencies.
• Use team benchmarks to align compensation with performance and production.
• Identify predictable ROI from marketing and patient flow strategies.

Strengthen Team Culture & Leadership Alignment

Employee turnover hurts not just morale but profitability. Practices with aligned leadership see stronger productivity, reduced training costs, and improved patient retention. These are indirect EBITDA gains that compound over time. Fortune Management’s comprehensive practice analysis identifies both the team dynamics and leadership gaps that impact performance.

When Should I Start Preparing My Practice for Sale?

The best time to start boosting your EBITDA is 3-5 years before you're ready to sell. But even if you're not considering a sale yet, taking steps to increase EBITDA gives you a more profitable, less stressful business today, with the added benefit of gaining more options in the future.

At Fortune Management, we emphasize long-term planning rooted in your vision as a dental professional. Our DDS to CEO coaching track helps practice owners strengthen leadership skills that directly influence profitability and value, whether your goal is rapid growth, smooth transition, or both.

What Buyers Look for Beyond EBITDA

While EBITDA is critical, it doesn’t exist in a vacuum. Buyers want clean, well-run businesses that show consistent trends and represent low-risk investments. Here’s what amplifies your EBITDA multiple:

• Diversified revenue streams (e.g. strong hygiene, specialty services)
• High patient retention and active recall systems
• A stable, well-trained team with low turnover
• Reliable financial reporting and clinical systems
• Facility and equipment that supports productivity and growth

How Fortune Management Helps Boost EBITDA Strategically

With over 35 years of experience empowering doctors and dental teams nationwide, Fortune Management delivers more than just advice. We offer strategic transformation grounded in personal and professional growth.

Unlike transactional consultants, we look at the complete picture of your practice, from finances and clinical schedule to morale and leadership. Our national reach ensures clients benefit from cutting-edge trends and peer learning, while our local presence provides supportive, in-person coaching that meets you where you’re at.

Our Differentiated Programs for Optimization

• Comprehensive Practice Analysis: Identifies key EBITDA drivers and obstacles through deep operational review.
• Fortune50: A strategic mastermind for high-performance doctors scaling for acquisition or large growth.
• Hygiene Mastery™: Unleashes hidden revenue through systematized hygiene coaching and strategic scheduling.
• Clinical Mastery: For teams looking to enhance procedure mix and clinical confidence that boosts revenue and retention.

Coupled with over 400 live events annually, our unique focus on in-person connection creates accountability, collaboration, and real behavioral change.

Ready to Maximize the Value of Your Practice?

Increasing dental practice EBITDA is more than a strategy for a stronger eventual sale. It’s a roadmap to a more fulfilling, profitable, and sustainable business. Whether you’re three months or three years away from selling, every percentage point gained in EBITDA puts you on a clearer path toward a more rewarding outcome.

Let Fortune Management help you uncover those opportunities with the nation’s most comprehensive dental coaching system. Start with a complimentary consultation and experience the impact of face-to-face strategy grounded in over three decades of leadership.