Question 01

What is my practice worth?

$813K – $1.15M
midpoint $982K
Annual collections$1,360,000
Booked profit$101,190
Owner add-backs+ $173,560
True profit$274,750
True-profit margin20.2%
Estimated sale value
$813K$1.15M
$813Kmidpoint$1.15M

Range reflects the three methods below applied to your books. A buyer typically opens near the low end; a strong story closes near the high.

How it's calculated

Three ways buyers price a practice.

Each method looks at a different piece of your books. Where the three overlap is where a real offer lands.

Most practice brokers
% of collections
Annual collections × 60–85%
$813K$1.15M

Solo GP with steady collections lands mid-band; owner concentration keeps it out of the top quartile.

DSOs and banks
Multiple of true profit
True profit × 3.5×–4.6×
$961K$1.26M

4.2× is fair — clean books, healthy margin, but a single-provider risk discount.

Formal appraisers
Capitalized earnings
True profit ÷ 27% risk rate
$950K$1.10M

Risk rate reflects owner-dependence; a two-doctor practice would drop to ~22%.

Market context

What practices like yours actually sell for.

Illustrative industry data — demo. These are not your comps, but they show how buyers think about size, margin, and location.

Practice typeRegionCollectionsTrue-profit marginSale price% of collectionsMultiple
Solo GPSuburban$900K16.0%$558K62%3.9×
Solo GPRural$1.00M18.0%$640K64%3.6×
Solo GPSuburban$1.15M19.0%$759K66%3.5×
Solo GPUrban$1.25M20.0%$850K68%3.4×
Solo GPclosest to youSuburban$1.35M20.0%$945K70%3.5×
Solo GPUrban$1.50M21.0%$1.08M72%3.4×
Solo GPUrban$1.60M22.0%$1.25M78%3.5×
Two-doctorSuburban$1.75M23.0%$1.40M80%3.5×
Owner expenses added back

Why true profit is higher than the tax return says.

A buyer removes personal expenses that ran through the practice. These add-backs are what turn booked profit into true profit.

Booked profit$101,190
Owner salary above fair replacement pay+ $91,000
Vehicle lease (personal use)+ $9,360
Family member on payroll+ $27,600
Owner health & life insurance+ $17,400
One-time legal settlement+ $18,000
Equipment loan interest+ $10,200
Total add-backs+ $173,560
True profit$274,750
What moves the number

Four levers, live.

Flip a switch to see how each change lifts the headline range at the top of the page.

Range with levers on$813K$1.15Mwas $813K$1.15M
Value midpoint over time

Where the number has been going.

Eight quarters of the midpoint valuation, calculated the same way each time.

Latest midpoint
$982K
$92K over 8 quarters
Q1 '24Q2 '24Q3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25

This is an estimate from your books, not a formal appraisal. Get a professional valuation before any transaction.