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.
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.