Dental-Lab Roll Ups: Why Now Is the Hottest Time to Sell Your Growing Lab
- Dr Allen Nazeri DDS MBA
- 5 days ago
- 4 min read
If you’ve spent the last 3–5 years growing your dental lab, there’s never been a more strategic time to consider a sale or consolidation opportunity. Dental-Lab Roll Ups have become one of the hottest trends in the dental industry, and for good reason. With over $100 million in dental lab M&A transactions closed last year under my direct mandate, investors and strategic buyers are recognizing the untapped value and scalability of lab operations across the country.
Dental-Lab Roll Ups Are Redefining the Industry Landscape
The traditional dental lab model is rapidly evolving. What was once a highly fragmented industry filled with mom-and-pop operations is now becoming a magnet for private equity firms, strategic consolidators, and regional powerhouses.
Dental-Lab Roll Ups bring multiple small to mid-sized labs under a unified platform. This strategy allows for shared services, reduced costs, expanded market reach, and most importantly—scalable growth. The most attractive roll-up targets? Labs with at least 3 to 5 years of consistent growth, healthy revenue, and scalable operational models.
Why Owners of Growing Labs Should Consider Selling Now
If your lab has hit its stride and is generating consistent net adjusted EBITDA, you’re in a prime position to take advantage of peak valuations. Here's why:
High Valuations: Labs with over $1M in net adjusted EBITDA are trading at 6–8X multiples, while those under $1M still fetch a respectable 4–6X. With deal activity surging, those numbers are holding strong—especially when owners are less involved in daily operations.
Favorable Market Timing: There's a limited window where consolidation is at its peak. Buyers want to move quickly before market saturation or macroeconomic shifts reduce their appetite.
Larger Buyers Need Your Lab: Whether it's geographic coverage, a niche capability (e.g., clear aligners or zirconia milling), or your client list, larger labs want what you’ve built.
The Marketing Power Behind Dental-Lab Roll Ups
Independent labs typically face challenges in brand visibility, online presence, and customer acquisition. By joining a Dental-Lab Roll Up, smaller labs instantly benefit from:
Centralized marketing teams who know how to target DSOs, private practices, and specialists.
Shared CRM and lead generation systems to streamline outreach and manage relationships.
Access to regional or national contracts that are usually out of reach for smaller labs.
This level of marketing firepower creates a flywheel effect—more accounts, more cases, and more scale.
Technology and AI: The Game-Changers in Dental-Lab Roll Ups
Technology is rapidly reshaping the dental lab business, and those who don’t keep up will struggle to compete.
Within Dental-Lab Roll Ups, shared investment in AI, CAD/CAM, and ERP systems means each acquired lab benefits from state-of-the-art tools without shouldering the full cost. Specifically:
AI-assisted design streamlines workflows and increases production accuracy.
Automation in milling and 3D printing reduces turnaround time.
Cloud-based collaboration allows labs across the network to share capacity and designs.
The Future of Dental Labs: Centralized Design, Local Printing
We’re moving toward a hybrid lab model where digital design is centralized—either offshore or in large U.S.-based labs—while 3D printing and finishing occur locally to ensure quality control and speed.
As this model matures:
Design becomes a commodity service, often outsourced to highly trained technicians overseas.
Local micro-labs will handle printing, staining, and final quality assurance, creating a new distributed delivery model.
In-house labs at dental practices will remain rare, as they lack the volume, talent, and cost efficiency to justify the infrastructure.
Even when some dental offices print on-site, the finishing, QC, and reliability will still require professional labs.
How Owner Involvement Affects Valuation in Dental-Lab Roll Ups
If you’re thinking about an exit, how involved you are in the daily operations will directly affect your lab’s valuation.
Labs with non-owner-led operations, robust teams, and SOPs are far more attractive.
Buyers place premiums on turnkey operations where the owner can leave without disruption.
A lab that runs well without its founder signals scalability and sustainability—the two things roll-up buyers are after.
Dental-Lab Roll Ups Offer the Best Exit Path for the Next 5 Years
As the industry consolidates and digitizes, the best opportunities to maximize your exit value are happening now. Here’s what you gain when you sell as part of a Dental-Lab Roll Up:
Premium valuation multiples that reflect your lab's strategic value.
Reduced personal risk—you don’t have to lead the lab forever.
Earn-outs and equity options that allow you to share in future upside.
Relief from operational headaches, giving you time to explore new ventures, consult, or retire comfortably.
Final Thoughts: Don’t Miss the Wave
The dental lab industry is undergoing a transformation—and those who move early will reap the greatest rewards. If you’ve grown your lab to a healthy position and are considering your next steps, now is the time to talk to an experienced M&A advisor.
Dental-Lab Roll Ups aren't just about selling out—they’re about selling up: into a better network, with better technology, and bigger opportunities for long-term growth.
Dr. Allen Nazeri, aka "Dr. Allen," boasts over 30 years of global experience as a healthcare entrepreneur. He is the Managing Director at American Healthcare Capital and Managing Partner at PRIME Exits. Dr. Allen provides strategic growth consulting to leadership teams of both privately held and publicly listed companies, ensuring their preparedness for successful exits.
He holds a Dental Degree from Creighton University and an MBA in M&A and Investment Banking from the University of Bedfordshire. He is also a Certified M&A Professional (CM&AP) from Kennesaw State University.
Dr. Allen is the author of two books on M&A:
He offers a free valuation to business owners ready for a partial or complete exit strategy. Dr. Allen collaborates with strategic buyers, private equity firms, and institutional investors, taking direct accountability for the annual successful sell-side representation of nearly $750M in enterprise value.
To have a confidential discussion about your company and receive a free valuation, email:Allen@ahcteam.com or Allen@ahcpexits.com
You can now communicate directly with Dr. Allen's AI clone:https://www.delphi.ai/drallen
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