Free tool
Is the asking price anywhere near sane?
Run the two methods buyers and lenders actually use, side by side, and see whether they agree. This will not tell you what a practice is worth. It will tell you whether the number in front of you deserves your time.
A sanity range, not an appraisal
Runs in your browserTrailing twelve months, collected, not produced, and not the seller's best year.
Staff, supplies, lab, rent, marketing, admin. Normalize out anything personal running through the books.
What you would pay an associate to do the owner's production. This is the step most napkin valuations skip, and it is why their numbers come out too high.
The number the seller or broker has put in front of you. The tool tells you where it lands against both methods.
The number that matters
Both methods agree somewhere between $660,000 and $825,000. An asking price well outside that needs a reason you can name.
This is a sanity check, not a valuation. Real pricing turns on the lease, the hygiene mix, patient attrition, equipment age, the fee schedule, staff who will stay, and how much of production walks out with the seller. Use this to decide whether a deal is worth diligence, then pay someone to do the diligence.
How to read it
Buyers pay for earnings that survive the seller leaving.
Revenue is the number sellers lead with and the number that matters least. What a buyer is purchasing is the earnings left over once someone has been paid to do the clinical work the owner was doing for free. That figure (adjusted EBITDA) is what both methods here are built on.
The percentage-of-collections method is quick and is what brokers quote. The EBITDA multiple is what a lender underwrites. When they overlap you have a defensible range. When they do not, something about the practice is unusual, and finding out what is worth more than any number this page can give you.
I have bought more than twenty practices, including ones I got wrong. The deals that hurt were never the ones where I paid slightly too much. They were the ones where I did not understand why the earnings looked the way they did.
Questions
Before you act on it.
Why replace the owner with an associate?
Because that is what a buyer is actually purchasing. If the seller's earnings depend on them personally producing, those earnings do not transfer: someone has to be paid to do that work. Skipping this step is the single most common reason a napkin valuation comes out far too high.
The two methods disagree. Which is right?
Neither, on its own: the disagreement is the finding. It means overhead is unusual for the revenue, and that is worth understanding rather than averaging away. Lenders will notice it too.
Can I use this to set my asking price?
No. Use it to decide whether a deal is worth paying for diligence on. Real pricing turns on the lease, hygiene mix, patient attrition, equipment age, the fee schedule, which staff will stay, and how much production walks out with the seller. None of that is in here.
What moves the number most?
Earnings quality, not revenue. A practice at $900K collections with clean 40% owner earnings is worth more than one at $1.3M running at 15%. Buyers pay for what survives the transition, which is why overhead is the lever that matters.
Buying this year? Acquisition Coaching works your actual deal, not a hypothetical.