Benchmarks · Updated September 2026
Dental practice sale multiples in Australia
A practice valuation examines sustainable earnings, owner reliance and the assets and liabilities included. The examples here compare illustrative 3–5× adjusted EBITDA and 60–90% of revenue methods separately; they are not market evidence or equivalent measures of value.
The calculator and worked examples use illustrative assumptions of 3–5× adjusted EBITDA and 60–90% of revenue. They are not verified market evidence, a recommended transaction price or a standalone goodwill valuation.
The EBITDA multiple
The multiple most buyers and valuers work with is applied to adjusted EBITDA — normalised profit after a market-rate owner wage. Our illustrative assumptions are 3× to 5×, not verified market evidence. Think of the multiple as a risk gauge: the more certain a buyer is that the profit continues without the seller, the higher they'll pay.
The gross-fees rule of thumb
A quicker cross-check values the practice at 60–90% of annual gross fees. It's blunt — two practices with identical fees can have very different profitability — so it is an illustration, not a valuation. Agreement does not validate either method. Differences can reflect the assumed profit margin.
What pushes the multiple up
- Revenue delivered by associates and hygienists, not just the owner
- A long, assignable lease on fair terms
- Clean financials, documented systems and stable staff
- Growth, a strong patient base and a desirable location
- Scale — larger practices attract more (and better-funded) buyers
What pulls it down
- Heavy owner reliance — the single biggest discount
- Short or uncertain lease
- Ageing equipment and deferred fit-out spend
- Messy records or key-person risk
- Contingent liabilities such as unresolved payroll-tax exposure
Corporate and DSO buyers
Corporate groups and DSOs can pay stronger multiples — but usually only for larger practices that fit their model, where scale and associate-delivered revenue lower their risk. A small, owner-dependent practice rarely commands a corporate premium.
Worked example
On $360,000 adjusted EBITDA: 3× = $1.08M, 5× = $1.8M. On $1.2M gross fees: 60% = $720k, 90% = $1.08M. The ranges meet at $1.08M; that does not establish a central value. Run your own numbers →
When a multiple isn't enough
A market multiple describes what practices trade for. It does not, on its own, meet the standard required when someone other than a buyer has to rely on the number — a court, the ATO, a bank or an incoming partner. Those matters need a documented, independent valuation prepared for that purpose: most often family law, a buy-in or buy-out, or an ATO / CGT market valuation. We're valuers only — we don't broker sales, so the multiple we apply isn't attached to a commission.
Frequently asked questions
What multiple do dental practices sell for in Australia?
Our calculator uses illustrative assumptions of 3–5× adjusted EBITDA and, separately, 60–90% of revenue. These are not equivalent ranges or verified transaction evidence. A formal valuation selects methods and assumptions for the practice and purpose.
Do corporates and DSOs pay higher multiples?
They can, for larger practices that fit their model — scale, systems and associate-delivered revenue reduce their risk. Smaller owner-reliant practices rarely attract a premium.
Is a revenue multiple or an EBITDA multiple better?
EBITDA is more reliable because it reflects profitability; a revenue multiple ignores margin. Use the revenue rule of thumb only as a cross-check on the EBITDA result.
See the full method in how to value a dental practice, read how the valuation of a dental practice works, or get a formal valuation.
General information only, not financial or valuation advice. Multiples are published industry ranges and vary with market conditions.