Oral Surgery Practice Valuation (2025 Update)
Oral surgery has emerged as a stable, high-demand segment within healthcare services M&A, combining procedural volume, anesthesia-enabled care, and diversified revenue streams that position it alongside other premium outpatient specialties. Investors continue to favor practices with strong referral networks, predictable throughput, and hybrid revenue models that balance private-pay procedures with medically necessary care.
While macro headwinds have pressured some discretionary healthcare segments, oral surgery has remained resilient. Multiple industry reports point to sustained investor appetite for procedural, high-utilization ambulatory care. Across the broader market, providers have significantly outperformed payers in 2024–2025, with stable EBITDA growth and consistent transaction volume. Oral surgery fits firmly within this high-performing group.
What you will learn in this report:
How oral surgery practices are currently valued across platform and add-on transactions in 2025
Which market trends are shaping pricing in procedural specialties
The factors that push oral surgery practices toward the upper or lower end of valuation ranges
How scale, anesthesia capabilities, referral density, and operational maturity influence buyer demand
What practice owners can do to position their groups for premium outcomes in a competitive M&A market
2025 Valuation Benchmarks
Practices with anesthesia infrastructure, multi-location density, deep provider rosters, and meaningful procedural volume align more closely with platform-level specialty physician groups. Smaller offices with limited management systems typically fall into the add-on category.
These ranges reflect valuation behavior seen across procedural specialties in 2024–2025, including GI, ophthalmology, dermatology, cardiology, dental services, and other clinical subspecialties tracked by PitchBook, Bain, VMG Health, and Scope Research.
| 2025 Oral Surgery Valuation Benchmarks | ||||
|---|---|---|---|---|
| Category | Platform (EV/EBITDA) | Add-On (EV/EBITDA) | Typical Revenue Multiple | Key Drivers of Premium Valuation |
| Oral Surgery | 10–13× | 5–8× | ~1.0–1.6× | Anesthesia capabilities, high-margin procedures, referral density, ASC partnerships, clinical throughput, provider roster, compliance infrastructure |
Source: works cited combined with guidance from internal bankers, based generally on knowledge and experience. Actual pricing varies with each transaction based on many factors. Intended for educational purposes only and not a guarantee of any outcome.
Market Dynamics in 2025
Across healthcare services, investor behavior has shifted toward operational discipline, selective capital deployment, and defensible service-line economics. PitchBook’s 2025 updates identify three subsectors leading provider M&A activity: behavioral health, dental, and home-based care, all of which share traits with oral surgery, including recurring patient flow and predictable utilization.
Another noticeable trend across healthcare services is the rising share of PE-backed practices held for more than five to seven years. PitchBook data shows that over 70% of PPM assets now fall into this category, suggesting meaningful pent-up supply that may reach the market beginning in 2026.
Broader macro dynamics shaping valuation include:
Stabilizing deal volume following the correction of 2022–2023
Reduced bid–ask spreads as valuations normalize
Strong performance among provider organizations, particularly those with procedural margins
Increased carve-out activity as strategics and payers divest non-core assets
Heavy PE involvement in mid-market provider roll-ups, which remains the dominant transaction model
Reports from Bain and VMG Health indicate that mid-market sponsors have continued to outperform through specialization and disciplined add-on integration, both of which directly influence how oral surgery assets are underwritten, priced, and scaled.
Unlike gastroenterology, which has seen deal activity freeze in 2025 due to GLP-1 drug effects, oral surgery has experienced no similar headwinds, reinforcing its position as one of the most resilient procedural specialties.
What Drives Premium Valuations in Oral Surgery
Several consistent factors influence whether practices achieve the upper end of valuation ranges:
1. Anesthesia & Sedation Infrastructure
Oral surgery practices offering in-house anesthesia typically command higher valuations due to:
Expanded procedure eligibility
Lower cancellation rates
Higher case acceptance
Increased throughput and revenue capture
VMG Health notes that anesthesia-enabled procedural care continues to outperform other outpatient categories due to margin stability and predictable utilization.
2. Procedural Mix and Margin Profile
Oral surgery includes both medically necessary and elective procedures. Practices with:
High case volumes
Implant services
Third-molar extractions
Bone grafting
Trauma and medically indicated procedures
…are viewed as more defensible and more predictable, supporting premium multiples.
PitchBook’s Q3 2025 analysis notes heightened scrutiny around Medicaid exposure following recent eligibility and rebate policy shifts. However, these pressures have had limited impact on oral surgery due to its procedural mix and comparatively low reliance on government reimbursement.
3. Referral Patterns and Geographic Density
Similar to orthodontics and pediatric dentistry, referral and geographic density are major factors. Buyers reward practices that have:
Stable, multi-year referral relationships
Proximity to general dentists, pediatric dentists, or orthodontists
Multi-site clusters that support shared staffing and centralized operations
Regional density is a key determinant of scalability and integration potential for PE-backed platforms.
4. Facility Modernization and Digital Integration
VMG Health’s 2025 findings emphasize that technology-enabled dental and surgical practices exhibit higher margin durability. For oral surgery, differentiators include:
Digital imaging and CBCT
Centralized practice management systems
Digital charting and electronic prescribing
Integrated RCM and analytics tools
Digitally mature practices typically produce cleaner, more defensible EBITDA.
5. Compliance, Credentialing & Workforce Stability
State-level scrutiny around sedation, facility safety, and ownership disclosure continues to rise. As noted across VMG and PitchBook reporting, compliance infrastructure is increasingly viewed as a valuation-critical element, not a secondary consideration.
Key valuation advantages include:
Documented sedation credentialing
Updated OSHA and emergency protocols
Strong clinical retention and succession planning
Clear provider compensation models
Practices with robust governance systems reduce diligence risk and attract more competitive bidding.
How Scale Impacts Valuation
Consistent with wider trends in 2024–2025 healthcare M&A, scale remains one of the strongest predictors of valuation outcomes. Patterns observed across Scope Research datasets, PitchBook’s Q3 2025 comp sheets, and FOCUS benchmarks show:
| EBITDA Scale | Typical Valuation Range (EV/EBITDA) | Common Characteristics |
|---|---|---|
| Under $1M | 5–7× | Single-site, limited infrastructure, owner-dependent |
| $1–3M | 7–9× | Multi-provider, early-stage systems, growing referral base |
| $3–5M | 9–11× | Multi-site, anesthesia capabilities, emerging platform |
| $5M+ | 11–13× | Platform-ready, strong operations, expansion capacity |
Incremental EBITDA growth often results in valuation step-ups, rather than linear movement, particularly at the $2M+, $3M+, and $5M+ thresholds commonly used by sponsors during acquisition screening.
Source: works cited combined with guidance from internal bankers, based generally on knowledge and experience. Actual pricing varies with each transaction based on many factors. Intended for educational purposes only and not a guarantee of any outcome.
Growth Pathways Evaluated by Buyers
Buyers may underwrite forward performance, making credible expansion planning a major influence on valuation. Across PitchBook and Bain analyses, platforms that demonstrate clear, achievable growth pathways consistently command premium multiples. In addition, sponsors heavily favor practices with documented histories of successful expansion, a theme repeatedly emphasized in Bain’s 2025 global review of provider roll-ups.
Organic Growth Levers
Provider recruitment with defined ramp models
Expanded operating hours or block-time efficiency improvements
CBCT and imaging integration to increase case acceptance
Workflow automation and centralized scheduling
Enhanced referral management
Inorganic Expansion Opportunities
Tuck-in acquisitions of single- or two-location OMS practices
Expansion into contiguous metropolitan areas
Partnership or co-development of anesthesia services
Strategic alignment with dental and orthodontic groups
Potential ASC partnerships or office-based surgical suites
Preparing for a Premium Valuation
Buyers consistently reward practices that show clear financial reporting, reliable systems, and scalable infrastructure. The table below summarizes the core areas that influence valuation outcomes and how each one shapes buyer perception during diligence.
| Focus Area | What Buyers Look For | Why It Matters |
|---|---|---|
| Financial Optimization |
|
Creates a credible earnings baseline, reduces diligence friction, and strengthens trust in the financial model |
| Operational Excellence |
|
Demonstrates maturity, stability, and predictable performance—qualities that support higher multiples |
| Clinical Systems & Compliance |
|
Reduces regulatory risk and signals strong governance, which buyers increasingly require |
| Scalable Infrastructure |
|
Shows that the practice can scale, integrate easily post-close, and support long-term growth under a platform |
Requesting a Copy of This Report
FOCUS Investment Banking specializes in maximizing transaction value for healthcare practice owners through our proven quarterback approach to M&A advisory.
If you’d like to learn more about our healthcare investment banking services, you can reach out here.
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