Joel Mannix, head of dental at Christie & Co, said, “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.”
Market overview
Christie & Co has highlighted 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. Small groups alone acquired almost a third (29 per cent) of businesses, compared with 18 per cent in 2023, making it the most active buyer group in 2024. 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.
However, there was a notable decrease in buyer activity from corporate owners.
In 2023, 31 per cent of dental business transactions were acquired by corporate owners. This fell to just 18 per cent in 2024.
The report revealed that as borrowing costs stabilised over 2024, the market gained more confidence, particularly in practice acquisitions. Viewings surged by 19 per cent, offers 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 Christie & Co said reflected the dominance of independent market activity (allowing for the increased volume of offers).
Activity levels were further bolstered by an 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 noted an average decrease of 9.6 per cent in the price of dental businesses sold in 2024. The market has experienced a further pricing recalibration, with valuation multiples adjusting to more sustainable levels. Christie & Co’s data has indicated that this correction has now stabilised and shows signs of renewed optimism. While the transactional market in 2024 saw fewer major deals to corporate operators, this shift has opened 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 felt positive, while 26 per cent felt negative and 37 per cent remained neutral.
When asked about their sale and acquisition plans, 65 per cent stated that they were looking to buy and/or sell this year.
Market predictions
In the dental market in 2025, Christie & Co has predicted:
- 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 Performers List Validation by Experience (PVLE) and Overseas Registration Examinations (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 target practices with a larger private patient base, which are less constrained by the 2024 Autumn Budget’s public sector stipulations
For more information visit https://www.christie.com/news-resources/business-outlook-2025/dental/