Seller guide
Dermatology Practice Valuation: What Your Practice Is Worth in 2026
Dermatology is one of the most actively acquired specialties. Here is how buyers set the price, and why size changes the multiple so much.
Short answer
Dermatology practices are valued on a multiple of adjusted EBITDA, with physician pay restated to market rates. Brokers report solo practices at roughly 3x to 5x, small and mid-sized groups at about 4x to 9x, and large platforms well above that. Provider depth, in-house Mohs and pathology, and a balanced medical, surgical and cosmetic mix move a practice up the range.
Why dermatology is priced on EBITDA
Dermatology has been a favorite of private equity buyers, and those buyers price practices the way they price any business: on normalized earnings times a multiple. Physician pay is restated to what the buyer will pay physicians after the sale, so the earnings figure reflects the business, not your personal income.
That also explains why practices of different sizes trade at very different multiples. A platform buying a large group is buying scale, management and a base to grow from. A solo practice is mostly the dermatologist.
Published ranges by practice size
| Practice profile | CT Acquisitions (June 2026) | FOCUS Investment Banking (2026) |
|---|---|---|
| Solo practice | 3x to 5x EBITDA | n/a |
| Small to mid-sized, 1 to 4 locations | 4x to 9x | 4x to 9x |
| Scaled platforms, $10M+ EBITDA | 12x to 15x | 12x to 15x |
These are brokers' published observations, not offers. Most independent practices will never sell at platform multiples; those numbers are what a platform is worth to the next investor, and they explain why platforms can pay a premium to add practices.
What moves a dermatology practice up or down the range
Provider depth
Several dermatologists, physician assistants and nurse practitioners who plan to stay make the practice easier to buy and grow. A practice built entirely on one physician sits at the bottom of the range.
Mohs surgery and dermatopathology
In-house Mohs and pathology add earnings that buyers value highly. Make sure they are documented clearly in the financials.
Medical, surgical and cosmetic balance
A strong medical and surgical base gives dependable demand; cosmetic cash-pay revenue adds growth. Buyers look at whether cosmetic revenue depends on one provider and how steady it is year to year.
Payer mix and growth room
Commercial payer rates, Medicare exposure, open exam rooms and a market that can support another location all affect the multiple.
Who buys dermatology practices
- Private equity-backed dermatology platforms, usually buying a majority with rollover equity and employment agreements. See private equity and dermatology practices.
- Regional dermatology groups adding locations and providers.
- Multi-specialty groups and health systems adding dermatology for their patients.
- Individual dermatologists buying a solo or small practice.
The headline multiple is not the whole price
Two offers at the same multiple can be worth very different amounts to you. Look at how much is paid in cash at closing, how much is rolled into equity, whether any of the price depends on future results, and how much compensation you give up after the sale. Our guide to rollover equity and earnouts explains each piece.
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Get a Free Practice ValuationCommon questions
What multiple do dermatology practices sell for?
Brokers report roughly 3x to 5x EBITDA for solo practices and about 4x to 9x for small and mid-sized groups in 2026, with large platforms far higher. Your multiple depends on providers, services, payer mix and growth room.
Does Mohs surgery increase a dermatology practice's value?
Usually yes. In-house Mohs and dermatopathology add earnings and are often a major reason buyers pay more.
Will I have to keep working after selling to private equity?
Usually. Platform deals typically include an employment agreement for several years, often with lower compensation than you earn today in exchange for the upfront payment.
Related reading
Sources
Figures are attributed to their source and date. Ranges are published estimates, not a valuation of any practice.
- CT Acquisitions, "Who Buys Dermatology Clinics? Private Equity Dermatology 2026," updated June 6, 2026 (broker publication). Link
- FOCUS Investment Banking, "Dermatology Practice Valuation: 2026 Benchmarks," August 2026 (as quoted in search results; page not fully reviewed). Link
- ECG Management Consultants, "Unlocking Value: The Role of Personal Goodwill in Physician Practice Deals," 2025. Link