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Valuation & M&A
Professional Practice Goodwill Valuation Tool
What the current owner draws out of a practice isn't the same as what the practice is actually worth. Replace the owner with a fairly paid professional first, then value what's left.
Reading This Tool
How To Use This Calculator
Enter what the owner currently draws, what a hired replacement professional would actually cost, and any add-backs.
Normalized earnings, what's left once a fair market replacement salary is subtracted, is the real economic profit of owning the practice rather than just working in it. That number, not gross revenue, is what a practice-specific multiple should apply to.
Your Inputs
Estimated Practice Value
-Estimated Goodwill & Practice Value
$0
Normalized Annual Earnings
$0
Revenue Multiple Implied
0.00x
Owner Compensation vs. Fair Replacement Salary
Multiples vary significantly by location, patient or client concentration, lease terms, and whether the owner stays on post-sale to support transition. This is a starting point for a conversation, not a substitute for a formal valuation.