If you’re a dental practice owner in NSW or ACT, you might be wondering: What would my clinic be worth if I sold it today?
Assessing a clinic’s value goes far beyond than just revenue. In 2025, demand is high among both young dentists and corporate buyers, but your final sale price depends on a few key drivers.
Here’s what they’re really looking for.
Key Drivers of Dental Practice Value
1. Adjusted Profitability (EBITDA)
Buyers use your Adjusted EBITDA as the baseline for valuing your clinic. This means looking at net profit and adding back:
- Owner salary (if above market)
- Depreciation
- Once-off or personal expenses
Typical valuation multiples range from 2.5× to 5× EBITDA, depending on location, clinic size, and operational independence.
2. Goodwill and Patient Base
The intangible value of your practice—your goodwill—is often the most significant part of the sale price. Buyers look at:
- Active patients in the past 12–24 months
- Recall rate
- New patient flow
- Clinical software and patient data quality
In many cases, goodwill accounts for 70–90% of the total business value.
3. Assets and Equipment
Dental chairs, imaging units (OPG, CBCT), fit-out, and sterilisation rooms matter. If your equipment is digital-ready and compliant with NSW standards, it adds confidence—and value.
4. Lease Terms
A secure, assignable lease with fair rent is a huge value-add. If you’re nearing lease expiry, consider negotiating an extension before going to market.
5. Market Comparables
We also compare your clinic to similar practices recently sold in your area—adjusting for factors like number of chairs, revenue, location demographics, and billing model (private vs public).
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