Private Equity

Practice Valuation Calculator

Estimate what your sports medicine practice could sell for to a private equity buyer, using market-standard EBITDA multiples by specialty and size.

Practice Inputs

Annual Collections

EBITDA

Sports med 25–35%, surgical ortho 30–40%, PT 15–25%

= $1.50M EBITDA

Specialty

Practice Size

Multiple Adjustments

ASC ownership

+1.0× to +2.0×

Strong ancillaries (PT + imaging + DME)

+0.5× to +1.0×

High Medicare mix (>50%)

−0.5× to −1.0×

Payer concentration risk

−0.5×

Aging owner, no succession

−0.5× to −1.0×

State Tax on LTCG (%)

FL/TX/NV/WA/NH/SD/AK/TN/WY = 0% · CA/NY/HI ≈ 9–13% · most states 4–7%

Rollover Equity %

Typical PE deals require 20–30% rollover into MSO equity

Enterprise Value

EBITDA × 6.5× – 9.5×

Low

$9.75M

Mid

$12.00M

High

$14.25M

After-Tax Take-Home

Federal LTCG (23.8%) + State (0%) = 23.8% effective

Low

$7.43M

Mid

$9.14M

High

$10.86M

Cash at Close + Rollover

Mid scenario with 25% rollover

Cash at close (after tax)$6.86M

Rollover equity (taxed at future exit)$3.00M

Multiple Breakdown (mid scenario)

Base: Sports Medicine, Mid-size (5–15)8.00×

Final multiple8.00×

Educational only — not financial advice. Real deal multiples vary based on local market dynamics, ancillary economics, owner compensation normalization, growth trajectory, and dozens of other factors. Always engage a healthcare-focused investment banker (e.g., Physician Growth Partners, Westcove, VMG Health) before negotiating with a PE buyer. Multiples shown reflect typical ranges from publicly reported sports medicine and orthopedic PE transactions.