What can a medical practice valuation calculator tell you?
A medical practice valuation calculator estimates what a practice is worth by multiplying adjusted EBITDA by a specialty-specific market multiple — the same method PE buyers, DSOs, and hospital systems use in actual transactions. It produces a credible range, not a final price: growth rate, payer mix, provider concentration, and deal structure move real offers by one to three turns in either direction. Use it to sanity-check an offer or plan an exit before paying for a formal valuation.
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Definition
A medical practice valuation calculator is a tool that estimates a healthcare practice's market value by applying published EBITDA multiples for its specialty, size, and deal type (add-on vs. platform).
The detail
Every serious buyer in healthcare — PE platforms, DSOs, MSOs, hospital systems — prices a practice as a multiple of adjusted EBITDA, so that is what a good calculator models: enterprise value equals adjusted EBITDA times the specialty multiple. The adjustment step matters more than most owners expect. Adjusted EBITDA strips out above-market owner compensation, personal expenses run through the practice, family on payroll, and one-time costs, and it is often materially higher than the book number — owners anchored on reported profit routinely underprice themselves. The multiple then depends on specialty and scale. Dental practices trade at 5x to 8x for single-location and add-on deals and 9x to 12x for multi-location groups and platforms, per FOCUS Investment Banking's dental EBITDA data. Physical therapy clinics run 5x to 7x at single locations and 7x to 9x for platforms with $1M+ in EBITDA. Across specialties, platform deals trade roughly 3 to 5 turns higher than add-ons — scale is the single biggest lever on the multiple, ahead of anything you change inside the four walls. What a calculator cannot do: it will not price your growth rate, payer-mix quality, provider concentration, real estate, or deal structure, which is why the real number can land one to three turns from the midpoint. Sorso's free practice valuation calculator applies these specialty bands to your revenue and EBITDA in about a minute, no email required. If the range surprises you — or an unsolicited offer is already on the table — that is the point to commission a formal valuation, which typically runs $5K to $25K, or talk to a CFO who has run these deals.
| Question | Free calculator | Formal valuation |
|---|---|---|
| Ballpark enterprise value | Yes — specialty multiple × adjusted EBITDA | Yes — with a full normalized-EBITDA build |
| Is this offer in the ballpark? | Yes — a sanity check in about a minute | Yes — defensible in an actual negotiation |
| Exact price a buyer will pay | No — growth, payer mix, and structure move it 1–3 turns | Closer — but the market sets the final number |
| EBITDA add-backs and normalization | Simplified estimate | Full build: owner comp, one-time costs, related-party rent |
A formal valuation typically runs $5K–$25K depending on scope. Start free; commission the formal build when a transaction is realistically within 24 months or an unsolicited offer is on the table.
Single-location and add-on dental acquisitions typically trade at 5x to 8x normalized EBITDA; multi-location groups and platform-grade deals reach 9x to 12x depending on scale.
Source: FOCUS Investment Banking — Dental Practice EBITDA Multiples
Platform deals trade roughly 3 to 5 turns higher than add-on acquisitions in the same specialty, which makes scale the biggest single driver of the multiple.
Source: FOCUS Investment Banking — Healthcare EBITDA Multiples
Adjusted EBITDA — after add-backs for above-market owner compensation, personal expenses, and one-time costs — is the number the multiple gets applied to, and it is often materially higher than book EBITDA.
Source: Sorso analysis
What this means for clinic owners
From Sorso
Owners usually obsess over the multiple, but the bigger swing is often in the EBITDA itself — the add-backs, the normalization, and how defensible the number is under diligence. Run the free calculator to get your range, then pressure-test the EBITDA before a buyer does it for you.
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What does a medical practice valuation cost?
A formal medical practice valuation costs $5,000 to $25,000 depending on practice size, purpose (sale, divorce, partner buy-in, estate), and whether you need a calculation engagement (lower cost, narrower scope) or a full opinion of value (higher cost, defensible in court).
What is the average EBITDA multiple for dental practices?
Dental practices sell for 5x to 8x EBITDA for single-location and add-on acquisitions, 9x to 11x for multi-location regional groups, and up to 12x for $5M+ EBITDA platform deals. The single biggest driver is scale: scale tier matters more than specialty. Where you actually land inside that band depends on three discounts most sellers miss and one sub-specialty premium — the worked math, size-tier table, and a live calculator are below.
What is the average EBITDA multiple for PT clinics?
Physical therapy (physiotherapy) clinics typically sell for 5x to 7x EBITDA for single-location and add-on acquisitions, and 7x to 9x EBITDA for multi-location platforms with $1M+ in EBITDA.
How do PE firms value medical practices?
Private equity firms value medical practices primarily on a multiple of trailing twelve-month adjusted EBITDA, typically 5x to 12x, with the multiple driven by scale, growth, payer mix, and provider retention.
What is the difference between platform and add-on multiples?
Platform acquisitions trade at 8x to 14x EBITDA — the buyer pays for scale, infrastructure, and management. Add-on acquisitions trade at 4x to 7x EBITDA because they bolt onto an existing platform. The same practice can be worth 2× more depending on which the buyer needs.
Founder of Sorso and a CFA charterholder. Before Sorso, Stan spent 19 years in corporate finance at institutions including UniCredit and Société Générale — managing a $450M loan portfolio and making senior partner at a major mezzanine lender by 29 — then built a fractional CFO firm exclusively for outpatient healthcare clinics.
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