What is your practice worth?
A rough, directional starting point. Small practices usually change hands on a multiple of their discretionary earnings — the profit left once you add your own pay back in. See an order-of-magnitude range, then have a professional value the real thing.
Most small practices change hands on a multiple of SDE (Seller’s Discretionary Earnings): the profit left once you add your own pay back in, since a buyer wouldn’t inherit your exact paycheck. The range applies a rough 1.5×–3× band to that number. Solo, owner-in-the-chair practices land near the low end; a team that runs without you sits higher.
This is a rough starting point, not a valuation. A real number depends on your client mix, how much the practice leans on you personally, your lease, your payer mix, growth, and a dozen things this can’t see. Before any actual sale, succession plan, or partnership buy-in, have a professional value your practice. Treat the figure above as a way to size the conversation, nothing more.
This is one slice. The full Snapshot shows your whole picture: what you really keep, your effective rate, and where the money goes. Free, about five minutes, nothing leaves your browser.
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