Dentists · Valuation
How much is a dental practice worth?
As a rule of thumb, dental practices sell for around 3 to 3.5 times EBITDA, or 70% to 120% of annual revenue. There are different formulas, but the question we always ask first is who's buying. Demand sets the price, and your records decide how much of your practice's value a buyer will actually believe.
By Inam Asiful
Senior Consultant, WeGrow Accountants · Director of a dental clinic in a metro region · Last reviewed 7 October 2026
Key points
- Rule of thumb: 3 to 3.5 times EBITDA, or 70% to 120% of annual revenue.
- Demand sets the price. Formulas don't sell practices; buyers do.
- Your last two to three years of records can make a real difference to valuation.
- With at least 18 months of planning, value can be lifted significantly, legally and ethically.
- In our experience, owners who need sale-ready financials within a week often end up with a lower valuation than they could have achieved.
The multiples we see
| Method | Typical range |
|---|---|
| Multiple of profit (EBITDA), rule of thumb | 3 to 3.5 times EBITDA |
| Share of annual revenue | 70% to 120% of annual revenue |
The revenue range comes from the dental practice purchases we've worked on over the last three years. Where a practice lands depends on its potential, whether the practitioners stay, the demographic, fit-out and equipment condition, location and rent. More on those factors in buying a dental practice.
Who's buying?
There are different valuation formulas available, but the most important question is whether there's demand for your practice. A practice nobody wants to buy isn't worth its multiple, however the maths looks.
Why your records decide the price
Your records over the last two to three years, and whether your accountant knows you're planning to sell, can make a real difference to your valuation. That's because profitability can be improved in the run-up to a sale, but only if someone is watching.
We sit with our clients every month to go through their profit projection and where that projection takes them in valuation terms. In our experience, owners who come to us needing sale-ready financials within a week often end up with a lower valuation than they could have achieved.
How we lift value before a sale
If we can guide a practice's financial operations for at least 18 months before a sale, we can significantly improve the valuation. One example of how: we separate the clinicians' income from the clinic's own income, so a buyer can see exactly what the business earns. Scenario C below shows how that can play out. It's one of many methods we use to lift reported profitability, and all of them are legally and ethically sound.
Three scenarios
These scenarios are hypothetical, but each one is based on situations we've seen with real clients.
Scenario A · Selling
Records that can't support a sale. A practice owner comes to us a month before they plan to step away from their clinic, asking for help with financials for a valuation. They've kept 15 years of handwritten records and used a different tax agent most years, so there's no single source to rebuild the history from. Reliable financials can't be produced in that time, and without them the practice struggles to sell.
Scenario B · Buying
A valuation built on the wrong numbers. A buyer is looking at a clinic with similar paper records and lodgements. The seller has a valuation based on the reported figures: $600,000 to $700,000, from a reported profit of $200,000 to $230,000 for the last financial year. When the financials are properly worked through, the clinic is actually running at a loss of roughly $80,000 to $120,000 a year. Armed with that, the buyer negotiates an asset purchase at $100,000 to $150,000.
Scenario C · Preparing to sell
Finding the profit that's already there. Lab costs are charged at 12% of revenue, taken off the practitioners' share and treated as clinic revenue. Once that's separated out, 7.5% of revenue turns out to be profit from the clinic's in-house lab work. That's profit a buyer couldn't see before.
The takeaway
Proactive support costs a little each year. Skipping it can cost more at sale time. As an illustration only: on a practice turning over $1 million, saving 1% in accounting fees is $10,000 a year, while a sale price 5% lower on a $1 million valuation is $50,000.
Frequently asked questions
How much is a dental practice worth?
As a rule of thumb, around 3 to 3.5 times EBITDA, or 70% to 120% of annual revenue. But the most important question is who's buying: demand sets the price, and reliable records decide how much of the value a buyer will believe.
What multiple do dental practices sell for?
As a rule of thumb, around 3 to 3.5 times EBITDA. In the dental practice purchases we've worked on over the last three years, prices landed at 70% to 120% of annual revenue. Where a practice sits depends on its potential, its practitioners, the demographic, fit-out and equipment, location and rent.
How can I increase the value of my dental practice before selling?
Plan early. If we can guide a practice's finances for at least 18 months before a sale, we can significantly improve the valuation, for example by separating clinician income from clinic income so a buyer can see what the business itself earns.
Should I tell my accountant I'm planning to sell?
Yes, and early. Profitability can often be improved in the run-up to a sale, so the more notice your accountant has, and the better your last two to three years of records, the more options you have.
Want this applied to your numbers?
Book a free 30-minute consult. We'll go through where you are now and what we'd do next if we were in your shoes.
Related guides
Buying a dental practice
What it costs, how we check the numbers, buying as a non-dentist, and buy-in vs start-up.
Running a dental practice: the numbers that matter
Profit margin, cost ratios, chair revenue, owner pay and the three numbers to watch weekly.
WeGrow Dental Benchmarks 2026
Income, hourly KPIs, chair revenue, cost ratios and sale multiples from our dental client base.
What dentists actually earn in Australia
Income by experience, metro vs regional, specialists, and why hours and scope matter more than ownership.
Sources
- WeGrow client data: ranges we see regularly across our dental clients, reviewed by Inam Asiful (7 October 2026).
General information only, not tax, financial or legal advice. Figures are ranges from our client base and public sources as at 7 October 2026; your situation will differ. Talk to us before acting on anything here.