Healthcare Practice Valuation Calculator
Estimate a directional enterprise value range for a healthcare practice, dental practice, medspa, MSO, or DSO using adjusted EBITDA, public valuation commentary, and common healthcare M&A value drivers. This tool is for educational and informational purposes only. It is not investment advice, a securities recommendation, a formal business appraisal, or a prediction of any transaction price. You should not rely on the output of this tool to make any investment, transaction, or business decision.
Free & ungated · No email requiredThis tool is for educational and informational purposes only. It is not investment advice, a securities recommendation or solicitation, a formal business valuation or appraisal, or legal, tax, or accounting advice. Healthcare Growth Strategies is not a registered investment adviser, broker-dealer, or licensed appraiser, and makes no representation or warranty as to the accuracy, completeness, or reliability of any estimate. You assume all risk of any use of or reliance on the output and should not rely on it to make any investment, transaction, or business decision. See the full Methodology, Sources & Disclaimers below and our Terms & Conditions; using this calculator constitutes acceptance of those terms.
Choose your practice type
The calculator adapts its fields and value drivers to the category you select.
Practice profile
Financial inputs
Enter trailing-twelve-month (TTM) figures. Everything stays in your browser — nothing is uploaded.
Normalization adjustments (add-backs)
These normalize earnings to what a buyer would actually inherit.
Growth & quality indicators
These position your estimate within the range. They don’t create false precision — they explain why value trends higher or lower. Hover any i for a definition.
Dental-specific details
Your directional valuation estimate
Adjusted EBITDA bridge
Valuation quality score
Estimated enterprise value
Adjust the EBITDA multiple
Multiple sensitivity
| EBITDA multiple | Enterprise value |
|---|
Potential valuation strengths
Potential valuation risks
What could improve valuation
Where Healthcare Growth Strategies connects valuation to operational growth work.
Suggested diligence items
Written summary
Copyable plain-text version of everything above.
Methodology snapshot
This calculator estimates a directional enterprise value range using a market approach based primarily on adjusted EBITDA multiples.
Estimated enterprise value = Adjusted EBITDA × EBITDA multiple
Adjusted EBITDA normalizes earnings for interest, taxes, depreciation, amortization, one-time or non-recurring expenses, personal or discretionary expenses, and the difference between owner pay and fair-market replacement compensation — an estimate of the sustainable earnings a buyer would inherit.
What moves the multiple within the range
The suggested multiple is positioned by a 0–100 quality score. These value drivers and weights are a directional positioning aid, not added precision:
| Value driver | Relative weight |
|---|---|
| Scale (adjusted EBITDA size) | 20% |
| Provider dependence (lower is better) | 12% |
| Revenue growth | 12% |
| Revenue quality & retention | 12% |
| Platform / scalability readiness | 10% |
| EBITDA margin | 10% |
| Payer / reimbursement risk (lower is better) | 8% |
| Market attractiveness | 8% |
| Systems & reporting maturity | 8% |
Higher scores push the suggested multiple toward the upper end of the range; lower scores toward the bottom. You can always override the multiple with the slider.
Directional EBITDA multiple ranges
| Category | Single location | Multi-location / group | Platform |
|---|---|---|---|
| Dental Practice / DSO | 4.0x–8.0x | 6.0x–11.0x | 9.0x–14.0x |
| Medspa / Aesthetics | 3.0x–6.0x | 5.0x–8.0x | 7.0x–12.0x |
| Physician Practice / MSO | 3.0x–6.0x | 6.0x–12.0x | 9.0x–14.0x |
| Other Healthcare Services | 3.0x–7.0x | 5.0x–10.0x | 7.0x–13.0x |
Educational and directional only. This is not a formal valuation, appraisal, fairness opinion, investment recommendation, tax opinion, legal opinion, accounting opinion, or transaction price prediction. See the full Methodology, Sources & Disclaimers below.
Sources and assumptions behind the ranges
The ranges below are an HGS synthesis of published advisor, banker and valuation-firm commentary. They are not drawn from a proprietary transaction database. The table shows what each range is based on and how much confidence to place in it.
| Segment | Earnings basis | Range shown (single / multi-location / platform) | Main public sources | Confidence (HGS judgment) |
|---|---|---|---|---|
| Dental practice / DSO | Adjusted EBITDA, with owner-dentist pay normalized to a market rate | 4.0x–8.0x / 6.0x–11.0x / 9.0x–14.0x | VMG Health; FOCUS Investment Banking (valuation, EBITDA multiples); Ad Astra Equity; Sofer Advisors | Moderate: five sources, three rated strong secondary |
| Medspa / aesthetics | Adjusted EBITDA, with injector and owner pay normalized | 3.0x–6.0x / 5.0x–8.0x / 7.0x–12.0x | FOCUS Investment Banking; Scope Research; HealthFMV; Sofer Advisors | Moderate: four sources, three rated strong secondary; wide spread between small and regional groups |
| Physician practice / MSO | Adjusted EBITDA after physician compensation is normalized | 3.0x–6.0x / 6.0x–12.0x / 9.0x–14.0x | FOCUS Investment Banking (physician M&A, medical practice); Sofer Advisors (medical practice, MSO) | Moderate to low: multiples vary sharply by specialty |
| Other healthcare services (for example home health, hospice, behavioral health) | Adjusted EBITDA | 3.0x–7.0x / 5.0x–10.0x / 7.0x–13.0x | PwC health services deals outlook | Low: a broad catch-all with no specialty-specific source yet; treat it as the least precise row |
About the weights. The value-driver weights in the methodology snapshot (scale 20%, provider dependence 12%, growth 12%, revenue quality 12%, platform readiness 10%, margin 10%, payer risk 8%, plus market and systems factors) were set by HGS from the themes these sources emphasize. They are authored heuristics, not statistically calibrated against closed transactions. General valuation approaches follow PwC and Deloitte guidance; the adjusted EBITDA definition follows common usage (Investopedia).
Worked example (illustrative)
A two-location dental group reports EBITDA of $420,000. Add back $80,000 of owner-dentist pay above a market rate and a $20,000 one-time legal fee, and adjusted EBITDA is $520,000. The multi-location dental range of 6.0x–11.0x gives a directional enterprise value of $3.12M–$5.72M. If the quality score places the practice at 8.0x, the point estimate is $4.16M ($520,000 × 8.0).
Enterprise value is not what the seller receives. Using the same example, subtracting $600,000 of debt leaves about $3.56M of equity value before transaction fees, taxes and working-capital adjustments. If 20% of that is rolled into the buyer’s equity, cash at close is about $2.85M before fees and taxes, with the rollover’s future value depending on the buyer.
How much is my practice worth?
Healthcare practices are commonly valued as a multiple of adjusted EBITDA: the practice’s earnings after normalizing owner pay and removing one-time costs. The multiple depends mainly on size, how dependent revenue is on one provider, growth, payer mix and how easily the business can be integrated or scaled. This calculator gives a directional range from those inputs. Before any transaction, a formal valuation and a quality-of-earnings review are what buyers and lenders rely on.
Methodology, Sources & Important Disclaimers
This tool uses a market approach based primarily on adjusted EBITDA multiples. Estimated enterprise value = adjusted EBITDA × an EBITDA multiple.
- Adjusted EBITDA normalizes earnings for interest, taxes, depreciation, amortization, one-time expenses, owner-specific expenses, and fair-market replacement compensation.
- Healthcare valuation depends heavily on specialty, size, growth, payer mix, provider dependence, compliance posture, quality of revenue, and buyer type.
- Public multiple ranges are directional, not definitive.
- Actual transaction value may differ materially based on quality of earnings, legal diligence, tax structure, working capital, debt, rollover equity, earnouts, provider agreements, non-competes, buyer demand, and market timing.
- This tool does not provide, and nothing on this page constitutes, investment advice, a securities recommendation or solicitation, a formal business valuation or appraisal, or legal, tax, or accounting advice. The output is a general educational estimate and should not be used as the basis for any investment, transaction, or financial decision.
- No reliance. Healthcare Growth Strategies makes no representation or warranty regarding the accuracy, completeness, or reliability of any estimate generated by this tool. You assume all risk associated with any use of or reliance on the output.
- Healthcare Growth Strategies is not a registered investment adviser, broker-dealer, or licensed appraiser, and does not hold itself out as such.
- Consult qualified legal, accounting, tax, valuation, and M&A advisors before making any decisions.
- Healthcare Growth Strategies may use AI-assisted research and editorial review to update this methodology.
Current base EBITDA multiple ranges
| Category | Single | Multi / group | Platform |
|---|
Sources reviewed
How healthcare practices are commonly valued
Most healthcare practices — dental practices, medspas, physician groups, MSOs, and DSOs — are valued using a market approach: a multiple applied to adjusted EBITDA. The multiple reflects how buyers price risk, growth, and quality. Larger, better-run, less owner-dependent practices generally command higher multiples.
What adjusted EBITDA means
Adjusted EBITDA starts from earnings before interest, taxes, depreciation, and amortization, then normalizes for one-time costs, personal or discretionary expenses, and the difference between what the owner is paid and what it would cost to replace their work at fair market value. It estimates the sustainable earnings a buyer would actually inherit.
Why EBITDA multiples vary
Two practices with identical EBITDA can be worth very different amounts. Multiples expand with scale, durable recurring revenue, low provider dependence, clean reporting, favorable payer mix, and strong growth. They compress with concentration risk, reimbursement exposure, weak systems, and heavy dependence on a single owner.
Dental practice and DSO valuation factors
Hygiene and recurring-care strength, associate-led production, reduced doctor dependence, payer-mix quality, recall and reactivation systems, and DSO integration readiness all influence dental and DSO multiples.
Medspa valuation factors
Repeat-visit behavior, membership and recurring revenue, provider stability, compliance posture, treatment-mix diversification, brand strength, and local affluence drive medspa and aesthetics valuations.
Physician practice and MSO valuation factors
Specialty demand, payer mix and reimbursement stability, ancillary services, provider and referral concentration, contracting strength, and MSO/platform infrastructure shape physician-practice and MSO multiples.
What can improve practice valuation
Reducing owner/provider dependence, improving recurring revenue, cleaning up add-back documentation, raising EBITDA margin, strengthening retention and reporting, and diversifying payers or referral sources can all move a practice up within — or beyond — its base multiple range.
What this calculator does not include
This tool does not model working capital, debt, real estate, tax structure, deal terms (earnouts, rollover equity, escrows), or a formal quality-of-earnings review. The output is a directional educational estimate only and does not constitute investment advice, a securities recommendation, a formal valuation, or a transaction price. Do not rely on it to make any financial or business decision.