Medical Exit GroupFree Medical Practice Valuation
Our free medical practice valuation shows what your practice could sell for, measured the way its most likely buyer will measure it. An advisor reviews what you send and gives you a realistic range, in confidence and with no obligation to sell.
- Free and confidential
- No obligation to sell
- Nationwide
Request your free valuation
Tell us about your practice: location, specialty and rough revenue and earnings. It takes about two minutes, and nothing is shared with anyone.
How practices are valued
How much can I sell my medical practice for?
You can sell your medical practice for what its most likely buyer will pay for the earnings that stay with the practice after you step back. Another physician, a private equity platform and a health system each measure those earnings differently, so a valuation starts by working out who your buyer is.
Selling to another physician
Collections first, then real earnings
Physician buyers and their lenders usually start with annual collections, because it is the number every doctor knows. The price that holds up comes from what is left after paying the buying doctor a market salary and running the practice.
That is why two practices with the same collections can sell for very different prices: overhead, payer rates and how many patients follow you rather than the practice all change what a buyer can afford to pay and borrow.
Owner-run practices
Seller's discretionary earnings (SDE)
SDE is the practice's profit plus your own pay, benefits and personal expenses run through the practice, with one-time costs taken out. It shows what the practice earns for a single owner who works in it.
Every add-back has to be documented and tie to your tax returns, and buyers will adjust for what it would cost to replace your clinical work.
Private equity and health systems
A multiple of adjusted EBITDA
Larger groups are valued on earnings after physician pay is reset to its level after the sale. The higher your pay after closing, the lower the price, so compensation and value are negotiated together.
Private equity offers often pay part of the price as equity in the buyer, and health systems must stay within fair market value rules, so the headline figure is only part of the comparison.
Financing shapes what a physician buyer can pay. Several national banks advertise up to 100% financing for qualified physicians buying a practice. Lenders approve those loans on the practice's verified cash flow, so a price the earnings can't repay is hard to finance.
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What to send
What do I need to send for a practice valuation?
To start, the basics in the form are enough. For a full valuation, send the last three years of profit and loss statements, balance sheets and tax returns, if available, plus annual net collections by year from your billing or practice-management system, a payer mix summary and your provider schedule.
Profit and loss statements
The last three years show the trend in revenue, overhead and what the practice earns.
Balance sheets
Year-end balance sheets show what the practice owns and owes, including equipment, receivables and debt.
Tax returns
Business returns for the same years let buyers and lenders check that the statements tie to what was filed.
Net collections by year
Pull these from your billing or practice-management system. We use collections, not gross charges, because payers pay their contracted rates, so billed charges overstate revenue.
Payer mix summary
The share of collections from commercial plans, Medicare, Medicaid and cash-pay patients, and which contracts you hold.
Provider schedule
Who sees patients, how many days a week and how much each provider produces, including you.
Don't have all of it? Send what you have, and we'll help you pull the rest together.
After you submit
What happens after I request a valuation?
We review what you send, an advisor reaches out to talk through the practice and fill any gaps, and you receive a realistic value range with the reasons behind it. Then you decide whether, and when, to do anything with it.
We review your details
Your specialty, location, size and earnings tell us which buyers are most likely to want the practice.
An advisor reaches out
A confidential conversation about your goals, your role after a sale and anything the numbers don't show.
You get a range
A realistic value range, the method behind it and what would move it up or down.
You decide what's next
Sell now, prepare for a sale in a year or two, or keep the number for planning. There is no obligation.
Confidentiality
Is my practice valuation confidential?
Yes. We use what you send only to value your practice. Nothing goes to a buyer, and no buyer learns your practice's name, unless you decide to sell and approve it.
- Your staff won't hear from usWe contact you directly, using the email or phone number you give us.
- No patient records neededA valuation uses financial and practice-level information, not patient charts.
- No obligation to sellThe valuation is free, and what you do with it is up to you.
- Seller-side onlyAs a medical practice broker and M&A advisor, we work for the practice owner, never for a buyer.
Questions
Medical practice valuation: common questions
Straight answers for owners who want to know what their practice is worth.
Is a free practice valuation the same as a medical practice appraisal?
No. Our valuation is a broker's view of the price range your practice could sell for in today's market. A formal appraisal by a credentialed appraiser is a separate engagement used for legal, tax or lending purposes, and a buyer's lender may order its own.
Why don't you publish valuation multiples?
Published multiples cover very different practices, buyers and deal terms, so one figure would mislead more owners than it would help. A valuation built on your own numbers and your likely buyer gives you a range you can act on.
Do I have to sell if I request a valuation?
No. The valuation is free and carries no obligation. You can request one years before you plan to sell, to see where you stand and what would raise the value.
Why do you ask for net collections instead of billed charges?
Because payers pay their contracted rates, not what the practice bills, so gross charges overstate revenue. Net collections by year from your billing or practice-management system show what the practice actually takes in.
Does the buyer's financing affect my price?
Yes, when the buyer is a physician who is borrowing. Several national banks advertise up to 100% financing for qualified physician buyers, but they lend against the practice's verified cash flow, so the price has to be one the practice's earnings can repay.
What raises the value of a medical practice?
Steady or growing earnings, revenue that doesn't depend on one provider, a healthy payer mix, staff who will stay, clean billing and records that tie to your tax returns. A valuation shows which of these matter most for your practice.
Free and confidential
See what your practice could sell for
Request your valuation in about two minutes, or read how the full sale works first.
Request Your Free Valuation