Path 07 of 08

Valuation and Exit

EBITDA multiples, valuation methodology, preparing for sale, due diligence on the sell-side, share vs. asset sale, and the framework for practice exits.

Most practice owners eventually sell their practice. Strong exit outcomes require deliberate preparation over multiple years — financial cleanup, operational improvements, valuation maximization, and buyer process management. This path covers the valuation methodology and exit framework that applies across healthcare specialties.

Sequenced Reading

The path, in order

Step 01

How Healthcare Practice Valuations Are Calculated

EBITDA multiples vs. revenue multiples, normalization adjustments, and how valuation actually works for independent healthcare practices across specialties.

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Step 02

Practice Valuation Multiples for Independent Operators

The multiple ranges that apply to different specialties, what drives multiple variation, and how to read valuation results in context.

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Step 03

Factors That Reduce Practice Valuation

What discounts a practice's value: practitioner concentration, patient concentration, lease problems, equipment age, and the operational issues buyers and lenders identify.

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Step 04

Preparing Practice for Sale: 24-Month Framework

The structured approach to preparing a practice for sale over 24 months. Financial cleanup, operational improvements, valuation maximization, and buyer process management.

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Step 05

How Private Equity Looks at Healthcare Practices

The PE perspective on healthcare practice acquisitions. What attracts PE buyers, what they pay attention to in diligence, and how PE buyer pricing differs from individual practitioner buyers.

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Step 06

Financial Due Diligence: What Buyers Look At

What buyers verify in seller financials. Useful for sellers preparing for sale to understand what will be examined and address weak points proactively.

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Step 07

How Practice Transitions Work in Canada and the US

The mechanics of practice transitions, how they differ between Canadian and US markets, and the typical timeline from initial conversation to closing.

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Step 08

Seller Financing in Healthcare Practice Transactions

When seller financing is appropriate, the typical terms, why sellers offer it, and how it affects deal economics and post-sale risk for both parties.

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Specialty-Specific Guidance

Need specialty-specific resources?

The path above covers universal valuation and exit concepts. For specialty-specific exit considerations — dental DSO buyer landscape, mental health practice value tied to practitioner relationships, optometry retail valuation dynamics — the specialty resource pages cover specialty-specific exit considerations.

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After You've Read the Path

Tools for valuation and exit

The Practice Valuation Reference produces an implied valuation range using EBITDA multiples primary methodology. The Profitability Calculator helps you understand the EBITDA picture buyers will see.

Open Tools Hub →