DENTAL PRACTICE VALUATION FEES
How much does a dental practice valuation cost in Australia?
HPNA values a dental practice for a fixed fee set by its annual revenue. A full valuation report costs $1,500 for revenue up to $1 million, $2,200 for revenue $1 million to $3 million, $4,950 for revenue $3 million to $10 million and $9,450 for revenue above $10 million, all plus GST. An indicative assessment is $950 plus GST, and an expert report for a dispute between owners starts at $4,495 plus GST. The fee is agreed in writing before work begins and does not change with the value we reach.
Fixed fee, published. Agreed in writing before work starts.
The schedule
Three tiers, each a fixed fee
Indicative assessment
$950
One fee whatever the size of the business, credited against a valuation report if you proceed within 3 months.
Valuation report
- Up to $1 million
- $1,500
- $1 million to $3 million
- $2,200
- $3 million to $10 million
- $4,950
- Above $10 million
- $9,450
Expert report
- Up to $10 million
- $4,495
- Above $10 million
- $16,950
Every fee above is fixed and quoted plus GST, and is agreed in writing before any work starts. Bands are set on annual revenue. A business sitting exactly on a boundary pays the lower fee. See the full fee schedule
Which revenue sets the band
The band is set on the annual revenue of the practice as a whole: the fees produced by the principal, the associates and the hygienists together, taken from the most recent financial statements. Where the practice runs through more than one entity, the first is included and each additional entity that has to be analysed is $795 plus GST. We confirm the band and the entities in scope before the engagement is signed.
Worked examples
How the fee is worked out
Each row applies the band rule and the additional entity fee to a hypothetical engagement. The rows illustrate the arithmetic, not what businesses in this sector typically earn. All fees plus GST.
| Engagement | Annual revenue | Tier | Working | Fee |
|---|---|---|---|---|
| A principal-led practice in one company, valued for a sale | $950,000 | Valuation report | $1,500, one entity | $1,500 plus GST |
| A practice with associates, valued for an associate buying in, sitting exactly on a band boundary | $3,000,000 | Valuation report | $2,200, one entity | $2,200 plus GST |
| A practice company and a second entity, valued for a dispute between its owners | $1,800,000 | Expert report | $4,495 plus $795 for one additional entity | $5,290 plus GST |
Which tier
The purpose of the valuation picks the tier
Indicative assessment
For a dentist weighing an approach from a buyer, or planning an exit some years out. It costs $950 plus GST whatever the size of the practice. It is a limited scope view for planning, not a report for a court, the Australian Taxation Office or a lender.
Valuation report
The full independent valuation for a sale or purchase, an associate buying in, a principal retiring, a tax matter or a restructure. It costs $1,500 to $9,450 plus GST depending on revenue.
Expert report
For a dispute between owners of a practice or a dental group, where the other side will test the conclusion. It starts at $4,495 plus GST.
What you are paying for
What the fee covers in a dental practice valuation
The fee covers the whole engagement as scoped: the analysis, the valuation and the written report. For a dental practice the analysis deals with the questions that decide how much of the fee income survives a change of owner.
- How much of the production the principal does personally, and a market rate for every dentist including the principal
- Associate contracts on a percentage of fees, and the payroll tax position on those payments
- The payer mix: private fees, health fund preferred provider arrangements, the Child Dental Benefits Schedule and DVA
- Equipment and imaging, and the capital the chairs will need
- The lease and the risk of relocation
- Whether the figure is for the practice or for shares in the entity that owns it
Fee or commission
Why a valuation costs a fee when a broker appraisal does not
A dental practice broker will often appraise a practice without charging, because the broker is paid when the practice sells. An appraisal of that kind is useful for deciding whether to list. It is commonly expressed as a proportion of turnover and it comes from someone who earns more when the figure is higher. A valuation is paid for by a fixed fee, so the valuer has no interest in the answer, and it sets out the normalised earnings and the reasoning so a buyer, an accountant or a family law adviser can test it. Business valuation versus business appraisal compares the two.
Go deeper
Read the full analysis
- Sector pageDental practice valuationsHow businesses in this sector are valued: methods, earnings adjustments, risks, value drivers and the information required.Read
- AnswerHow much is my dental practice worth?What the answer depends on in this sector, what pushes it up and what pushes it down.Read
- FeesThe full fee scheduleEvery tier and band, the boundary rule, the additional entity fee and what the fee includes.Read
FAQs
Dental practice valuation fee questions
How much does a dental practice valuation cost?
HPNA values a dental practice for a fixed fee set by its annual revenue. A full valuation report costs $1,500 for revenue up to $1 million, $2,200 for revenue $1 million to $3 million, $4,950 for revenue $3 million to $10 million and $9,450 for revenue above $10 million, all plus GST. An indicative assessment is $950 plus GST, and an expert report for a dispute between owners starts at $4,495 plus GST. The fee is agreed in writing before work begins and does not change with the value we reach. Each additional entity that has to be analysed is $795 plus GST. The full schedule is on the pricing page.
Does the fee depend on the value HPNA reaches?
No. The fee is fixed for the revenue band and agreed in writing before the work starts, so it cannot move with the conclusion. HPNA also takes no commission from any party to a transaction. A valuer who is paid more for a higher figure is not independent, which is why the fee is set this way.
Does the number of chairs or dentists change the fee?
No. The fee is set by the annual revenue of the practice, not by the number of chairs, dentists or sites. A practice turning over an amount inside a band pays the fee for that band however that revenue is produced. The only addition is where more than one entity has to be analysed, at $795 plus GST for each additional entity, which is agreed before the engagement is signed.
Which fee applies when an associate is buying into the practice?
A buy-in on agreed terms is a standard valuation report, at $1,500 to $9,450 plus GST by revenue. The report values the whole practice first and then the interest being acquired. If the owners are in dispute about the price, the engagement is an expert report, which starts at $4,495 plus GST.
Make your next decision with a clear understanding of value.
Tell us about your healthcare business and the purpose of the valuation. We will confirm the appropriate scope, information requirements, timeframe and the fee band that applies.