MEDICAL PRACTICE VALUATION | Part 5 of 5 How Private Equity Values Medical Practices Private equity (PE) remains a dominant buyer in healthcare mergers and acquisitions. Understanding how PE firms evaluate practices improves negotiation positioning.   Private Equity Investment Thesis PE firms look for: Platform scalability Predictable cash flow Recurring patient base Expansion opportunities Geographic […]

MEDICAL PRACTICE VALUATION | Part 4 of 5 Revenue vs Profit: What Buyers Really Care About Many physicians assume revenue determines value. In reality, profitability drives valuation.   Why Revenue Alone Is Misleading Two practices generating $5M in revenue can have dramatically different valuations based on margins. Buyers purchase earnings, not top-line sales.   What […]

MEDICAL PRACTICE VALUATION | Part 3 of 5 What Increases the Value of a Medical Practice Before Sale? Physicians can proactively increase enterprise value before going to market. Strategic improvements 24–36 months before a sale often yield significant financial returns.   1. Reduce Owner Dependency Hire associate physicians or mid-level providers. Multi-provider practices are less […]