Benchmarks · Updated July 2026
Dental practice sale multiples in Australia
Australian dental practices typically sell for about 3× to 5× adjusted EBITDA, which usually works out to roughly 60% to 90% of annual gross fees. Where a practice sits in that range is driven, above all, by how much of its profit depends on the current owner.
The EBITDA multiple
The multiple most buyers and valuers work with is applied to adjusted EBITDA — normalised profit after a market-rate owner wage. A common Australian range is 3× to 5×. 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's a sense-check, not a valuation. When it agrees with the EBITDA result, the range is sound; when it doesn't, margin is usually the reason.
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 overlap points to a central value around $1.0M–$1.1M. 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?
Most trade at roughly 3× to 5× adjusted EBITDA, which usually equates to about 60% to 90% of annual gross fees. Larger, systemised, associate-driven practices reach the top of the range.
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.