Periodontal & Implant Dentistry Practice, 24-Year Daytona Beach FL Specialty Office

$2.1M

Revenue

$804K

SDE

2.9x

Multiple

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Full Editorial Writeup

This is a 24-year-old single-doctor specialty dental practice focused on periodontics and implant dentistry across two locations in Daytona Beach and Palm Coast, Florida. The practice delivers a full specialty menu: comprehensive periodontal therapy, dental implant placement, regenerative procedures, and periodontal surgery, serving patients throughout Volusia and Flagler Counties. The Daytona Beach flagship runs seven operatories in a seller-owned 3,000 square foot building, while the Palm Coast satellite runs three operatories in a leased 1,000 square foot space, and all ten operatories are currently in use.

The standout feature is the 100% fee-for-service model with zero participating insurance contracts. That is a materially different economic animal than a typical insurance-dependent practice: no insurer fee schedules compressing margins, no claims friction, and pricing power that drops straight to the bottom line. On $2.05M in revenue the practice throws off $804K of cash flow, a 39% margin that confirms the fee-for-service thesis is working.

The practice runs lean with seven full-time and two part-time staff including one full-time hygienist, and uses DSN/Perio for practice management. At $2.3M asking against $804K cash flow, this is a 2.86x multiple on a specialty, referral-driven practice with two established locations and a quarter century of local brand equity. The seller owns the Daytona building separately, which is flagged as an optional add-on acquisition that also carries rental income from other tenants.

Why we like it

Earnings quality is strong and clean: $804K of cash flow on $2.05M revenue is a 39% margin, and the 100% fee-for-service model means that cash is not being siphoned by insurer fee schedules or claims adjudication delays. Fee-for-service collections are faster and higher-value per chair than PPO-dependent practices, which supports both durability and buyer underwriting.
Specialty periodontal and implant work is a durable, hard-to-disrupt niche with a 24-year referral base. General dentists refer these cases out, so the practice sits at the top of a referral funnel that is defensible and expensive for a new entrant to replicate in the same market.
Demographics in the Daytona Beach and Palm Coast corridor skew older, and implant and periodontal demand rises with age. This is a structurally favorable patient mix, and Florida's inbound retiree migration provides a long-term tailwind for an aging-focused specialty.
Two established locations with ten operatories already in use give a buyer an operating platform rather than a startup. A periodontist or DSO can plug a new doctor in and immediately capture existing case flow, and the lean staff of nine keeps overhead disciplined.

How to improve it

Recruit and credential a second producing periodontist or associate within the first 90 days to de-risk the single-doctor concentration and unlock capacity, since all ten operatories are in use but one clinician caps throughput. Adding a second provider is the fastest path to growing collections without new real estate.
Build a formal referral-development program with general dentists across Volusia and Flagler Counties, tracking referral sources and lunch-and-learn cadence. Specialty practices live and die on GP referrals, and a quarter-century owner likely relies on personal relationships that need to be systematized and transferred before they walk out the door.
Add or expand in-house financing and membership plans for implant cases given the fee-for-service model. High-ticket elective procedures convert better with structured payment options, and this directly lifts case acceptance on the highest-margin procedures.
Install modern treatment-plan and recall software workflows to maximize hygiene recall and periodontal maintenance visits, which are the recurring backbone of a perio practice. Tightening recall compliance turns one-time surgical patients into repeating maintenance revenue.
Evaluate adding CBCT imaging and guided implant surgery capability if not already in place, both to improve case efficiency and to recapture scan fees that may currently be referred out. Better in-house diagnostics can increase per-patient revenue and clinical throughput.
Negotiate the adjacent real estate purchase as a separate transaction to capture both occupancy control and the existing tenant rental income. Owning the Daytona building removes landlord risk on the flagship and adds a passive income stream, though it should be underwritten on its own merits at market cap rates.

Diligence notes

Quantify owner-doctor production versus hygienist and associate production to understand how much of the $804K cash flow walks out with the seller. In a single-doctor specialty practice, the key question is whether a replacement periodontist can hold the case volume, and at what compensation, which materially changes real post-sale earnings.
Verify the referral source concentration: pull the top GP referrers and the percentage of new patients each drives. If a handful of general dentists send the majority of cases, those relationships are a transfer risk that must be addressed in the deal structure and transition plan.
Confirm the collections and payer mix detail behind the 100% fee-for-service claim, including average fee per procedure, write-offs, and aging. Fee-for-service is a strength only if collection rates are genuinely high and not masking slow-pay or discounting on big implant cases.
Separate the real estate economics entirely from the operating business, including the building's value, the tenant leases, rental income, and whether any related-party rent is flowing between the owner and the practice. Make sure the practice's occupancy cost is at market so the cash flow is not artificially inflated by below-market rent.
Review the Palm Coast lease term, renewal options, and rent escalators given that location has no expansion room and is fully utilized. A short or unfavorable lease on a maxed-out satellite is a real constraint on that location's future contribution.
Assess staff tenure, roles, and whether the single full-time hygienist is a bottleneck for the recurring periodontal maintenance base. Hygiene capacity and key-staff retention through transition are critical to preserving recall revenue after the owner departs.

Source

Originally listed on BusinessBroker.net. View original listing →