How to Sell Your Medical Practice Business
Medical practices are valued based on patient volume, payer mix, and provider retention. Private equity has driven significant consolidation across specialties.
EBITDA Multiple
4x – 8x
SDE Multiple
2x – 4x
Typical Revenue
$1M–$10M
Avg. Timeline
8–14 months
What Drives Medical Practice Valuation
Buyers evaluating medical practice businesses focus on these key factors when determining what multiple to offer:
- Patient volume and referral network
- Payer mix (commercial vs. Medicare/Medicaid)
- Provider retention and employment agreements
- Ancillary revenue streams
- Electronic health records and compliance
- Facility ownership vs. lease
Who Buys Medical Practice Businesses
- Private equity-backed physician groups
- Hospital systems
- Larger medical groups in same specialty
- Management services organizations (MSOs)
Example: Medical Practice Valuation
A medical practice business with $500,000 in EBITDA would typically be valued at:
Low estimate (4x)
$2.0M
High estimate (8x)
$4.0M
Use the Business Valuation Calculator with your actual numbers.