Suggestions on calculating multiples for physician led practices?

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January 12, 2022

by a searcher in Dallas, TX, USA

Any suggestions on how to value physician owned practices? What are market multiples/valuations … sub $1M EBITDA, $1.5-2.0M EBITDA, $2-2.5M EBITDA? Is there a formula that is used? Is there a data source to see the latest multiples?

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commentor profile
Reply by a professional
from Boston University in Boston, MA, USA
I've seen varying valuations depending on the type of practice. Medical Group Management Association may have this data, but it is likely paywalled. Happy to discuss further via messenger.
commentor profile
Reply by a searcher
from Cornell University in Denver, CO, USA
3x - 7.5x in the range that you just described (this is our anecdotal experience in bidding on a number of these businesses).
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