Dental Practice Valuation: How Much Is Your Dental Business Worth Today?

If you are considering selling your dental practice, understanding how valuations are structured is an essential first step. Whether you operate a single-site NHS surgery or a multi-chair private practice, buyers will use a consistent framework to assess value.

This guide explains how dental practice valuations are typically calculated and highlights the steps you can take to strengthen your outcome.

How Are Dental Practices Valued?

Most dental businesses are valued using an earnings multiple applied to EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation). Buyers focus on an underlying, or “associate-led,” EBITDA figure that reflects the ongoing profitability of the practice without the involvement of the current owner.

For example, an EBITDA of £350,000 with a multiple of 7x results in a valuation of £2.45 million.

Nearly all transactions are completed on a cash-free, debt-free basis and require a handover period where the principal remains in the business. This is typically around three years.

What Is Associate-Led EBITDA?

EBITDA shown in your accounts may not reflect the true earnings that a buyer will inherit. The underlying EBITDA is adjusted to present a more accurate and favourable view of the business.

Common adjustments include:

• Principal fees and lab costs recalculated as if the principal were on an associate agreement

• Director or shareholder expenses removed if they are not expected to continue

• Exceptional or one-off costs such as legal or restructuring fees excluded from the earnings base

• Pro-forma adjustments made to account for recently added capacity or revenue

• Synergy savings considered where a buyer could remove duplicated roles or overhead

These adjustments help present the business in the most positive light and support a higher valuation.

What Drives Your Dental Practice Valuation Multiple?

As of 2025, EBITDA multiples in the UK dental sector typically range from 6.5x to 9.5x, depending on the nature of the practice and the profile of its earnings. The following factors are especially important.

Revenue Quality

The composition of revenue matters. Recurring private income is valued more highly than NHS contracts or one-off procedures such as implants or specialist interventions.

Fee Levels and Profit Margins

Higher average fees and strong margins support stronger valuations. Practices located in affluent areas with high levels of private work are often valued most favourably.

Principal Dependency

The less reliant a business is on the principal to generate revenue, the more attractive it becomes to buyers. Associate-led models reduce risk and increase transferability.

Location

Buyers favour practices located in affluent residential areas with good accessibility, parking and high footfall. Local demographics and demand for services are key considerations.

Property and Facilities

Modern, well-presented surgeries and reception areas are viewed positively, especially by corporate acquirers. Facilities that are ready for expansion or have already undergone investment may also support a stronger valuation.

Business Scale

Larger practices or small groups typically attract higher multiples. This reflects both efficiency and the opportunity to benefit from scale.

Illustrative Valuation Ranges

Practice Profile	Characteristics	Typical EBITDA Multiple
NHS practice in a less affluent area	One to three chairs, over 50 percent principal dependency	6.5x to 7.5x
Mixed private practice in an affluent area	Three to five chairs, 25 to 50 percent principal dependency	7.5x to 8.5x
High-end private or specialist group	Five or more chairs, multiple sites, less than 25 percent principal dependency	8.5x to 9.5x or more

These examples assume the practice operates on a leasehold basis. Freehold practices may attract a premium or be negotiated separately.

What Does “Cash-Free, Debt-Free” Mean?

Dental practice sales are often structured as share sales. This means the buyer acquires the company itself, not just its assets. The agreed price is typically calculated on a cash-free, debt-free basis with a standard level of working capital.

In simple terms:

• The seller retains any cash in the business

• The seller repays any outstanding debt

• A working capital adjustment is made to ensure there is sufficient cash in the business post-sale

This adjustment can affect your final proceeds. Sellers are encouraged to understand it in detail during sale planning.

Thinking About a Sale?

The strongest outcomes are usually achieved by sellers who plan ahead and understand how buyers will assess value. Preparing a defensible EBITDA figure and addressing key valuation drivers will place you in the best possible position.

Eclipse Corporate Finance specialises in advising owners of healthcare businesses. Our team provides expert guidance to dental practice owners considering a future sale or planning for an exit.

If you are thinking about selling, or simply want to understand your dental practice valuation, we would be happy to help.

Dental Practice Sales