Medical practice value at a glance
Estimate your medical practice's value
Applies the cited SDE multiple band for your trade, then positions you inside it using recurring revenue, customer concentration, owner dependence, years operating and trend. Educational estimate, not an appraisal.
Educational estimate, not an appraisal or an offer. Ranges come from published closed-sale data and broker/adviser reports cited on each trade page; the adjustment weights are our own documented heuristic (see Editorial policy). Real estate, inventory and working capital are excluded.
Get the full valuation brief (printable)
Your inputs and range, the cited multiples behind it, the buyer type active at your size, three changes that move the multiple, and next steps - on this page, ready to print or save as a PDF.
Published medical practice multiples by deal size
| Deal size / buyer | Multiple | Source |
|---|---|---|
| Main Street sales, 2021-2025 (sold) | 1.46x-2.94x SDE (median 2.05x); revenue 0.42x-0.91x | |
| All industries, Q2 2026 (context) | Under $500K deals: 2.0x SDE; $2M-$5M: 4.0x EBITDA; $5M-$50M: 5.8x EBITDA | IBBA / M&A Source / Pepperdine Market Pulse, Q2 2026 highlights |
What moves the multiple for a medical practice
Key metric buyers ask for: Collections, payer mix, provider count and productivity (wRVUs), ancillary revenue, referral sources.
Pushes you toward the top of the range
- Multiple producing providers so patients are not tied to the seller
- Commercial payer contracts that will carry over
- Ancillary services and a stable referral base
Pushes you toward the bottom
- Revenue concentrated in the selling physician
- Heavy Medicare/Medicaid exposure to reimbursement cuts
- Compliance gaps a buyer will find in diligence (billing, coding)
How buyers value a medical practice
Small practices sold to another physician trade on SDE after paying the buyer a market salary. Hospital systems and PE-backed groups price on EBITDA and must keep the price within fair market value for healthcare fraud-and-abuse rules, which caps what they can pay for referrals-driven value.
Rule of thumb on revenue: About 0.4-0.9x revenue (BizBuySell sold middle half 0.42-0.91x). Use it only as a sanity check; buyers pay for cash flow they can finance.
Worked example: Lakeside Internal Medicine (fictional)
Fictional business for illustration. Revenue $1,800,000, SDE $360,000. Two physicians and one NP, 60% commercial payers, seller wants to retire in 18 months.
| Position in the cited range | Implied value | Multiple of revenue |
|---|---|---|
| At the low end (1.5x) | $540,000 | 0.30x |
| Midpoint (2.05x) | $738,000 | 0.41x |
| At the high end (2.9x) | $1,044,000 | 0.58x |
Who buys a medical practice at each size
Physicians buying in or buying out; hospital and health systems; PE-backed physician groups (specialty-dependent). See who is buying medical practices for named acquirers and their sponsors.
| SDE / EBITDA size | Most likely buyer | How they usually pay |
|---|---|---|
| Under ~$300K SDE | Physician buyer | SBA or bank loan plus buyer cash; sometimes a seller note |
| ~$300K-$1M SDE | Physician group or health system | SBA loan, seller note, or cash from a larger buyer |
| $1M+ EBITDA | Health system or PE-backed group | Mostly cash at close; rollover equity and earn-outs are common |
Thinking about selling your medical practice?
See the step-by-step sale process, license transfer rules and documents buyers will ask for.
Frequently asked questions
How much is a medical practice worth?
Medical practices sold on BizBuySell from 2021-2025 went for a median 2.05x SDE (middle half 1.46-2.94x) and about 0.62x revenue. Specialty, payer mix and provider depth move the number.
Can a non-physician buy my practice?
In corporate-practice-of-medicine states such as California, lay entities cannot practice medicine or employ physicians (B&P Code 2400), so outside buyers use management-company structures. Rules vary by state.
Is this an appraisal?
No. It is an educational estimate built from published data. Lenders, courts and the IRS may require a credentialed appraisal; see appraisal vs estimate.
Sources
- BizBuySell Valuation Benchmarks - Medical Practice (accessed 2026-09-23)
- BizBuySell - Business valuation multiples by industry (sold Q3 2021-Q2 2026) (accessed 2026-09-23)