Practice Value Tool

What is your practice worth?
Start with a real range.

Get an indicative enterprise value range based on the financial and operating performance of your practice. About a dozen inputs, most of them straight off your profit and loss statement, and roughly four minutes.

Estimate My Practice Value

The inputs

About a dozen inputs. Most come directly from your P&L.

Use a trailing twelve months if you have it. A last full year works if you are not tracking monthly. Round figures are fine, since this produces a range rather than an appraisal.

The practice

Practice type

Market

Entity type

Locations included in these numbers

Revenue

Total collectionsEverything the practice actually collected

Hygiene as a percentage of collectionsIf you are not sure, leave it at 35

Earnings

Four numbers straight off the profit and loss statement. We do the normalization from there, so you do not need to calculate anything yourself.

Net profitThe bottom line of the P&L. Enter a negative number if it is negative.

Total paid to ownersSalary, distributions, guaranteed payments, and owner benefits combined

Interest expenseWhat you paid the bank in interest, not the whole loan payment

DepreciationStraight off the P&L

AmortizationLeave blank if you do not have any

Owner discretionary spendPersonal expenses running through the practice that a buyer would not inherit

Risk profile

How much of the production do you personally perform?

Do you participate in Medicaid?

What this is

A starting point, and an honest one.

Built from your numbers

We estimate normalized earnings and apply market evidence appropriate to the practice profile, with doctor compensation replaced at market rather than at whatever the owner happens to take.

Deliberately conservative

The range sits where a transaction realistically clears rather than where an owner hopes it will. A number that flatters you is worth nothing when diligence starts.

Not an appraisal

An indicative planning range, adjusted for size, growth, provider dependency, payer mix and operating risk. A full valuation examines the whole business and narrows it considerably, inside a Comprehensive Practice Review or a Blueprint.