Fear remains one of the most persistent barriers to dental care access, and it’s more widespread than many realize. According to new research from NYU College of Dentistry, over 72% of adults report some level of dental fear, with more than a quarter describing it as severe. At Lion Business Advisors, we’ve observed that practices that effectively address this fear, through technology, patient communication, and preventive care, are gaining a competitive edge and attracting more strategic buyer interest.
Key Trends Shaping the Market
Major Industry Development
A study released this quarter revealed that nearly three out of four U.S. adults experience some degree of fear when visiting the dentist. Among those, 45.8% report moderate fear and 26.8% experience severe fear, which often leads to deferred care and worsened oral health. This dynamic creates both operational challenges and opportunities for dental practices. Practices that invest in patient experience, such as offering sedation dentistry, modern diagnostics, or teledentistry consults, may not only increase patient retention but also position themselves as more attractive acquisition targets. With demand shifting toward value-based and preventive care, owners should consider how their practice addresses dental anxiety when preparing for an eventual sale.
Employment and Wage Trends
Employment at dental practices was largely flat in August 2025, growing just 0.5% year-over-year. Over the past decade, however, dental employment expanded by 16.2%, outperforming the 13.0% growth seen across all private employers. Wages continue to climb, albeit modestly, nonsupervisory employees earned an average of $34.14 per hour in July 2025, up 3.7% year-over-year. While dental wages have increased 42.7% over the past 10 years, they still lag behind the broader private-sector wage growth of 49.0%. In Texas, labor market competition remains intense, especially in metro areas like Austin, Houston, and Dallas, where dental hygienist and assistant shortages persist.
Industry Forecast
Sales for U.S. dental practices are projected to grow at a compound annual rate of 4.98% from 2025 to 2029, according to Vertical IQ. This rate exceeds the anticipated growth of the broader U.S. economy, making dental practices a favorable segment for long-term investment and M&A activity. While no Texas-specific forecast was provided this quarter, continued population growth and demand for dental services in urban and suburban markets suggest regional trends will likely track or exceed national averages.
M&A Market Outlook
We continue to see a seller-favorable environment in dental M&A, driven by robust demand from DSOs, private equity-backed consolidators, and individual buyers seeking recession-resistant investments. Practices with recurring hygiene revenue, diversified payer mix, strong EBITDA margins, and clean financials are commanding premium multiples. In Texas, acquisition interest remains especially high in the Austin and Dallas-Fort Worth metros, where buyer competition is driving up valuations. Sellers who invest in operational efficiency and patient experience now may see significant upside in their practice value over the next 6–18 months.
With continued growth, steady buyer demand, and favorable valuations, Q4 presents a timely window for dental practice owners to begin exit planning. Even if you’re 1–3 years out, early preparation can significantly increase your eventual sale value.
Lion Business Advisors’ quarterly industry insights incorporate data and trends sourced from internal deal flow and buyer activity, Vertical IQ, and market comparables from platforms such as Axial and BVR (Business Valuation Resources).
Industry Insight Report: Dental Industry Q3-2025
Fear remains one of the most persistent barriers to dental care access, and it’s more widespread than many realize. According to new research from NYU College of Dentistry, over 72% of adults report some level of dental fear, with more than a quarter describing it as severe. At Lion Business Advisors, we’ve observed that practices that effectively address this fear, through technology, patient communication, and preventive care, are gaining a competitive edge and attracting more strategic buyer interest.
Key Trends Shaping the Market
Major Industry Development
A study released this quarter revealed that nearly three out of four U.S. adults experience some degree of fear when visiting the dentist. Among those, 45.8% report moderate fear and 26.8% experience severe fear, which often leads to deferred care and worsened oral health. This dynamic creates both operational challenges and opportunities for dental practices. Practices that invest in patient experience, such as offering sedation dentistry, modern diagnostics, or teledentistry consults, may not only increase patient retention but also position themselves as more attractive acquisition targets. With demand shifting toward value-based and preventive care, owners should consider how their practice addresses dental anxiety when preparing for an eventual sale.
Employment and Wage Trends
Employment at dental practices was largely flat in August 2025, growing just 0.5% year-over-year. Over the past decade, however, dental employment expanded by 16.2%, outperforming the 13.0% growth seen across all private employers. Wages continue to climb, albeit modestly, nonsupervisory employees earned an average of $34.14 per hour in July 2025, up 3.7% year-over-year. While dental wages have increased 42.7% over the past 10 years, they still lag behind the broader private-sector wage growth of 49.0%. In Texas, labor market competition remains intense, especially in metro areas like Austin, Houston, and Dallas, where dental hygienist and assistant shortages persist.
Industry Forecast
Sales for U.S. dental practices are projected to grow at a compound annual rate of 4.98% from 2025 to 2029, according to Vertical IQ. This rate exceeds the anticipated growth of the broader U.S. economy, making dental practices a favorable segment for long-term investment and M&A activity. While no Texas-specific forecast was provided this quarter, continued population growth and demand for dental services in urban and suburban markets suggest regional trends will likely track or exceed national averages.
M&A Market Outlook
We continue to see a seller-favorable environment in dental M&A, driven by robust demand from DSOs, private equity-backed consolidators, and individual buyers seeking recession-resistant investments. Practices with recurring hygiene revenue, diversified payer mix, strong EBITDA margins, and clean financials are commanding premium multiples. In Texas, acquisition interest remains especially high in the Austin and Dallas-Fort Worth metros, where buyer competition is driving up valuations. Sellers who invest in operational efficiency and patient experience now may see significant upside in their practice value over the next 6–18 months.
With continued growth, steady buyer demand, and favorable valuations, Q4 presents a timely window for dental practice owners to begin exit planning. Even if you’re 1–3 years out, early preparation can significantly increase your eventual sale value.
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