From the Managing Director:
"In 15+ years advising on physician practice exits—including a 17x EBITDA ophthalmology sale to a PE-backed
platform—the single most valuable thing you can know is your real number, not a broker's inflated
estimate."
— Terry Forsyth, VP Operations (AmSurg), M&A
Advisory (Mosaic Healthcare)
Knowing what your medical practice is worth is the essential first step in any exit planning process. Our practice valuation calculator provides an instant estimate based on specialty-specific multiples and current M&A market data—the same methodology institutional buyers use.
Get Your Confidential Valuation Estimate
Our calculator takes 60 seconds and provides an instant range based on your specialty, revenue, and practice characteristics. No obligation. No sales pressure.
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How Practice Valuation Works
Medical practice valuations typically use the EBITDA multiple method. Your practice's Earnings Before Interest, Taxes, Depreciation, and Amortization is calculated with appropriate adjustments, then multiplied by a specialty-specific multiple.
Example Calculation
Practice Revenue: $2.5M
Adjusted EBITDA: $625K (25%
margin)
Specialty Multiple: 6x
Estimated Value: $3.75M
Current EBITDA Multiples by Specialty
| Specialty | Solo/Small | Multi-Provider | Platform Scale |
|---|---|---|---|
| Dermatology | 5-7x | 7-10x | 9-12x+ |
| Ophthalmology | 4-6x | 6-8x | 8-10x+ |
| Gastroenterology | 4-6x | 6-8x | 8-10x |
| Orthopedics | 4-5x | 5-7x | 7-9x |
| Cardiology | 3-5x | 5-7x | 6-8x |
| Urology | 4-5x | 5-7x | 6-8x |
| Pain Management | 3-4x | 4-6x | 5-7x |
| Primary Care | 2-3x | 3-4x | 4-5x |
Factors That Increase Your Multiple
- Multiple providers: Reduces key-man risk
- Strong EBITDA margins: 20%+ margins are attractive
- Growth trajectory: Consistent YoY growth commands premium
- Ancillary services: In-office labs, imaging, procedures
- Cash-pay revenue: Cosmetic, wellness services
- Geographic desirability: Coastal and Sun Belt markets
Factors That Decrease Your Multiple
- Solo provider dependency: Key-man risk is the #1 value killer
- Declining revenue: Buyers don't chase falling knives
- Medicare concentration: High Medicare % means lower margins
- Lease uncertainty: Short remaining term or hostile landlord
- Clean financial issues: Personal expenses in books, poor documentation
Understanding Add-Backs
Your EBITDA includes adjustments ("add-backs") for expenses that wouldn't continue under new ownership:
- Owner compensation above market
- Personal expenses: Vehicles, travel, family phones
- Related-party rents
- One-time expenses: Lawsuit costs, implementation projects
Ready to Know Your Real Number?
Get your confidential practice valuation estimate. If your practice qualifies, we'll discuss whether one of our limited Q2 advisory spots is right for you.
Check If You QualifyAverage client achieves 15-30% higher multiples than initial broker estimates