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BIZBITE

Dental Lab

Crowns, night guards, and CAD/CAM workflow hide a sticky B2B machine

Bottom line

Worth studying, but do not buy without strong local proof.

Dental labs fabricate crowns, bridges, dentures, implants, aligners, and other restorations for dental offices. The surprising angle is that once a dentist trusts a lab's fit, turnaround time, and remakes process, switching becomes painful, which creates meaningful customer stickiness. Modern digital workflows also let a regional lab punch above its weight with high-value work and tight relationships.

36
Acquisition score
Fair

Avg Revenue

$1.4M

Profit Margin

22%

Acquisition Multiple

3x - 5x

Startup Cost

$150K - $700K

How It Works

Dentists send physical or digital impressions, the lab designs the restoration, mills or fabricates the case, finishes it, and ships it back on a deadline. Revenue comes from per-case pricing, premium cosmetic work, implant cases, and recurring dentist accounts. Labs that invest in CAD/CAM and communication software can defend pricing through speed and quality.

Revenue Range

Low End
$500K
Typical
$1.4M
High End
$3.0M

BizBite underwriting snapshot

Pass for now

Dental Lab has enough high-level data for a first look, but BizBite has not assigned a category-specific operating model yet. Treat the score as preliminary.

33
Avoid / 100
Data confidence
medium
52/100
Financing fit
medium

Category-level fit before lender-specific diligence.

Confidence cap
78

Weak source data caps the final score.

Why it may work

  • +SBA dataset shows 3 recent comparable loans

Be careful

  • !Source link status has not been verified yet
  • !No last-checked date yet
  • !No category operating model yet
  • !No category model yet

Real Acquisitions in This Category

SBA 7(a) change-of-ownership loans · NAICS 339116 · Dental Laboratories

Deals tracked
17
3 in last 24 mo
Median loan
$657K
$350K–$1.4M p25/p75
Implied deal size
$773K
median · ~85% LTV
Charge-off rate
not enough resolved loans

Deal Size Distribution

<$150K
2
$150K–500K
5
$500K–1M
5
$1M–2M
1
>$2M
4

Deal Flow Over Time

12-month momentum
-50.0%
deal volume vs prior 12 mo
Median loan Δ
-80.7%
1 recent · 2 prior

Financing Profile

Median rate
9.50%
0% fixed · last 24 mo
Median term
120 mo
standard 10-yr
Collateralized
0%
of loans secured
Median jobs
11
supported per deal
Top lenders in this space
America First FCU2
Live Oak Banking Company2
The Huntington National Bank2
GBC International Bank1
PNC Bank, National Association1
Where deals happen
CA3
NY3
AZ2
OR2
WA1
NJ1
OK1
UT1
IL1
WI1

Recent Comparable Deals

ClosedStateLoanImplied deal
Aug 2025CA$450K$529K
Dec 2024IL$25K$29K
Nov 2024CA$4.6M$5.4M
Nov 2023UT$657K$773K
Sep 2023OR$907K$1.1M
Sep 2023OR$2.8M$3.3M
Aug 2023NY$250K$294K
Aug 2023NY$3.6M$4.2M
Apr 2023WI$350K$412K
Feb 2023NJ$1.4M$1.6M
Volume rank #285/544Deal-size rank #297/544Momentum rank #318p90 loan: $2.8MData as of Mar 2026

Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.

Pros

  • +Sticky B2B customers once trust is earned
  • +High-value recurring work tied to healthcare demand
  • +Digital workflows improve throughput and margins
  • +Regional labs can specialize by product line or dentist type

Cons

  • -Technical hiring and remake rates can hurt profitability
  • -Equipment is expensive and must stay busy
  • -Some categories face offshore pricing pressure

Best For

Operators comfortable with technical production, healthcare relationships, and workflow-heavy B2B service

Operating Costs

BizBuySell search snippets referenced a Midtown Manhattan dental lab with about $1.1M annual revenue and $200K-$385K cash flow, plus another Nassau County listing with about $2M gross revenue. Major costs include lab tech labor, milling and scanning equipment, materials, remakes, and shipping.

SBA Financing Estimator

Adjust the deal — see if it cash flows after debt service

$-12829/mo
after debt service
Deal price — $3.5M
Range: $3.5M (3×) to $8.4M (5×+)
Down payment — 15% ($525K)
SBA minimum equity injection is 10% for change-of-ownership
Interest rate — 9.50%
SBA median for this category: 9.5%
Loan term — 10 years (120 mo)
SBA median for this category: 120 months
Down payment
$525K
15% equity injection
Loan amount
$3.0M
85% SBA-financed
Monthly payment
$38K/mo
$1.6M total interest
Monthly profit
$26K/mo
at 22% margin
Monthly cash flow after debt service
$-12829/mo
Margin does not cover debt service at these terms. Lower the deal price, increase the down payment, or extend the loan term.

Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.

Where to Buy

BizBuySell – Midtown Dental Lab

Search result snippet referenced a Manhattan dental lab with disclosed annual revenue and cash flow

BizBuySell – Nassau County Dental Lab

Listing snippet referenced a well-established dental lab with gross revenue disclosed

National Association of Dental Laboratories

Industry association showing common lab categories, workflows, and market structure

36/100Fair

Acquisition Score

Profit margin
15/30
Entry multiple
13/25
Market depth
0/20
Risk (charge-off)
8/15
Deal momentum
0/10

Scores margin (30), entry multiple (25), SBA market depth (20), category risk (15), and deal momentum (10). Higher = better acquisition candidate.

Quick Facts

Category
service
Difficulty
4/5
Buy price
$4.2M$7.0M

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