The independent sector drove 82% of dental transactions in 2024 reveals Christie & Co report

Market overview

​Christie & Co highlights the plethora of market activity from the independent sector in 2024, with first-time buyers, existing owners, and smaller groups driving over 80 per cent of agreed transactions, and small groups alone acquiring almost a third (29 per cent) of businesses in 2024 compared with 18 per cent the year before, making it the most active buyer group last year. This sustained momentum in the volume segment was reflected in pricing, with practices achieving an impressive average of 108 per cent of their asking price.

Meanwhile, there was a notable decrease in buyer activity from corporate owners – where this buyer type acquired 31 per cent of dental business transactions in 2023, it acquired just 18 per cent in 2024.

As borrowing costs stabilised over the year, the market gained more confidence, particularly in practice acquisitions. Viewings surged by 19 per cent, offers received rose by 17 per cent, and the number of agreed deals soared by 26 per cent compared with 2023. The aggregate value of all offers increased by 1.5 per cent which, when allowing for the increased volume of offers received, reflects the dominance in independent market activity.

Activity levels were further bolstered by a significant 18 per cent rise in the number of practices brought to market in 2024. This influx of supply provided prospective buyers with a wider range of opportunities, influencing the average number of offers per practice sale. After climbing from 2.2 in 2022 to 4.4 in 2023, the average rose to 4.8 in 2024, reflecting the evolving market dynamics.

Pricing

Christie & Co notes an average decrease of 9.6 per cent in the price of dental businesses sold last year. The market has experienced a further pricing recalibration, with valuation multiples adjusting to more sustainable levels. Christie & Co’s data indicates that this correction has now stabilised and is showing signs of renewed optimism on the horizon. While the transactional market in 2024 saw fewer major deals to corporate operators, this shift has opened up exciting opportunities for independent and first-time buyers.

Sentiment

As part of its annual sentiment survey, the company surveyed dental professionals across the country to gather their views on the year ahead. When asked about their sentiment in 2025, 37 per cent said they feel positive and 26 per cent feel negative, meanwhile, 37 per cent remain neutral. When asked about their sale and acquisition plans, 65 per cent stated that they are looking to buy and/or sell this year.

Market predictions

In the dental market in 2025, Christie & Co expects:

• A continued appetite from independent groups and owner-operator first-time buyers for all practice types
• Increased numbers of sellers wanting to exit before future changes to Business Asset Disposal Relief (BADR)
• Higher National Living Wage (NLW) rates affecting practice profitability along with employers’ National Insurance contributions (NICs)
• Private Equity-backed corporate buyers returning to the market in light of stabilised interest rates and successful periods of integration and divestment
• Continued issues with recruitment, alleviated somewhat by the streamlining of the PVLE & ORE processes
• Due to the financial restrictions placed on NHS-focused practices, such as the ineligibility for the increased employment allowance, acquisitions focused on NHS-heavy portfolios might have less appeal to buyers. Buyers may, instead, target practices with a larger private patient base, which are less constrained by the 2024 Autumn Budget’s public sector stipulations

Joel Mannix, Head of Dental at Christie & Co, comments, “As we move into 2025, the dental market is poised for continued growth. With independent buyers and smaller groups leading the charge, we anticipate a dynamic year ahead. Stabilised borrowing costs and a broader range of opportunities will likely fuel further acquisitions, while renewed appetite from private equity-backed corporate buyers will add a further exciting dimension to the market. Despite some ongoing challenges, the overall sentiment is optimistic and, when coupled with that wider activity, we expect the market to continue to adapt and thrive, driven by agility, innovation and resilience.”

To read the full business outlook report, visit: https://www.christie.com/news-resources/business-outlook-2025/dental/

-----------------

For further information on this press release, contact:
Phoebe Hill, Associate Director – Corporate Communications
P: 07540 063 598 or E: phoebe.hill@christie.com