Practice Sale Calculator — Value a Medical, Dental, or Professional Practice

Practice Sale Calculator

Value medical, dental, law, CPA & professional practices for sale

What is this? This calculator values a professional practice (medical, dental, legal, accounting, consulting) for sale using two standard methods: Seller's Discretionary Earnings (SDE) and EBITDA multiples. It shows your realistic selling price range, after-tax proceeds, and how long it typically takes to sell in your industry.

Who it's for: Practice owners planning an exit, buyers evaluating acquisition price, or brokers preparing a listing. Used by medical practices, dental offices, law firms, CPA firms, and consulting practices.

Your Practice Financials

Annual Revenue ($)

Annual Expenses ($)

Owner's Salary & Benefits ($)

Annual Net Profit ($)

Practice Type

Market Multiples (Based on Practice Type)

SDE Multiple

EBITDA Multiple

Multiples vary by specialty, location, size, and market conditions. Seller's Discretionary Earnings (SDE) = Net Profit + Owner's Compensation.

Valuation Results

SDE-Based Value

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EBITDA-Based Value

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Revenue Multiple

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SDE Margin

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Average Value

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After-Tax Proceeds

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Practice Sale Timeline Estimate

Typical Time to Sell—

Broker Commission (5-10%)—

Closing Costs (2-3%)—

Net Proceeds After All Fees—

How Practice Valuations Work

SDE Method: Add back the owner's salary and benefits to net profit to get true cash flow to the owner. Multiply by an industry multiple (typically 1.5-3× for most practices). This is the most common method for practices under $2M.

EBITDA Method: Earnings Before Interest, Taxes, Depreciation & Amortization. Used for larger practices ($2M+). Multiples range from 4-8× depending on specialty and profitability.

List Your Practice for Sale

Ready to sell? Business brokers specializing in professional practices can help you find qualified buyers and negotiate the best price:

BizBuySell — Browse Practices →

Estimates for educational purposes only. Practice valuations depend on location, specialty, staff, patient/client base, equipment, lease terms, and current market conditions. Consult a qualified practice broker or M&A advisor for transaction-ready valuations.

Business Broker & Exit Planning

Tools that pair well with this calculator — selected by our team.

Empire Flippers →

Sell your online business — marketplace fee sharing

MicroAcquire →

Buy and sell small online businesses

Tool	Best For	Network
Empire Flippers	Sell your online business	Direct
MicroAcquire	Buy and sell small online businesses	Direct

We may earn a commission if you click above. Calculator is free to use.

Frequently Asked Questions

What is my practice worth?

Most service businesses (accounting, legal, dental, medical) sell for 50-100% of annual revenue for a strategic buyer. Most sell for 20-50% of annual revenue to a financial buyer. Most owner-operated practices sell for 1-3x SDE (Seller Discretionary Earnings).

What reduces practice value?

Heavy owner dependence, declining revenue trends, customer concentration, poor documentation, outdated systems, and short client contracts all reduce value. Documented processes and trained staff increase value significantly.

How long does a practice sale take?

3-12 months from listing to close. Letter of Intent (LOI) takes 2-4 weeks. Due diligence takes 30-60 days. Closing takes 2-4 weeks. SBA loans add 30-60 days. Strategic buyers move faster than financial buyers.

What is a fair non-compete?

Non-competes typically cover 15-30 miles and 2-3 years for service businesses. They should be narrow in scope. Courts often modify overly broad non-competes. Negotiate carefully — a seller without a non-compete is a red flag to buyers.