Thinking of Buying a Dental Practice in Australia? Here Are 3 Vital Questions to Ask

The Australian dental services industry generated $14.8 billion in revenue in 2026 across more than 20,980 enterprises, employing 64,044 people.

Profit margins are strong at 25.8%, reflecting the industry’s ability to generate returns well above many other health service sectors.

Revenue is forecast to grow at 2.6% annually through 2031, reaching $16.9 billion, supported by an ageing population, increased demand for restorative and cosmetic procedures, and greater uptake of private health insurance extras cover.

However, high treatment costs and limited government support remain barriers to universal access, prompting patients to delay or forgo care during economic downturns.

1. Is the Practice Financially Viable and Positioned for Growth?

Why It Matters:

Dental practices can be highly profitable, but earnings are influenced by location, patient mix, and exposure to cost pressures such as wages, rent, and consumables.

What to Check:

• Revenue streams – Preventative, restorative, and specialist services, with cosmetic dentistry an increasingly lucrative segment.

• Profitability – Average industry margins are near 26%, but practices tied to insurer agreements may have restricted pricing flexibility.

• Cost management – Wages, consumables, and rent can erode margins if not well controlled.

• Corporate dentistry trends – Private equity-backed groups like Pacific Smiles and Bupa are consolidating smaller practices, creating competitive pressures.

2. Does the Practice Have a Competitive Edge in its Market?

Why It Matters:

Reputation, location, and patient loyalty determine long-term success. Strong positioning helps practices withstand competition from both independents and corporates.

What to Check:

• Location advantage – NSW, Victoria, and Queensland account for three-quarters of industry enterprises due to population and income concentration.

• Patient demographics – Middle-aged and older adults (35–74 years) are the largest spenders on dental care.

• Service reputation – Independent practices often promote their autonomy from insurer-controlled preferred provider networks as a point of difference.

• Community reach – Extended hours, shopping centre locations, and online booking systems enhance accessibility and retention.

3. Is the Practice Positioned for Future Consumer and Technology Shifts?

Why It Matters:

Dental demand is evolving, shaped by consumer expectations, technological innovation, and regulatory change. Practices that adapt early gain a competitive edge.

What to Check:

• Technology adoption – Digital dentistry, 3D printing, and teledentistry are expanding service portfolios and improving patient engagement.

• Consumer trends – Rising demand for cosmetic services such as veneers, whitening, and orthodontics is reshaping treatment mixes.

• Accessibility initiatives – Voucher schemes like the Child Dental Benefits Schedule support volumes, but uptake is below target at just 38% of eligible children.

• Policy outlook – Industry bodies are pushing for a Seniors Dental Scheme, and calls to include dental care under Medicare are growing.

Ready to Invest in a Thriving Dental Practice?

With high profit margins, growing demand from ageing Australians, and rising interest in cosmetic and restorative services, dental practices remain an attractive investment.

Success will depend on careful financial management, strong local positioning, and readiness to adapt to technology and policy changes that will shape the industry’s future.

For Buyers:
Create an account to set up alerts here.

For Sellers:
Sell Your Business here.