MEDICAL PRACTICE VALUATION | Part 2 of 5

EBITDA Multiples by Medical Specialty in 2026

Not all medical practices receive the same valuation multiple.

In healthcare M&A, specialty demand drives pricing.

Below is a high-level overview of valuation dynamics by specialty category.

High-Multiple Specialties

These specialties often attract strong private equity interest:

• Dermatology
• Ophthalmology
• Gastroenterology
• Orthopedics
• Dental
• Aesthetics

Why?

• Strong cash flow
• Ancillary service expansion
• Scalable multi-location models
• Recession-resistant demand

Mid-Range Multiple Specialties

• Primary Care
• Cardiology
• ENT
• Urology
• OB/GYN

These specialties may receive solid multiples but depend heavily on structure and growth.

Lower Multiple Risk Factors

• Heavy government payer mix
• Single-provider dependency
• Declining reimbursement
• High overhead ratios

Platform vs Add-On Valuations

Platform acquisitions (larger anchor practices) command higher multiples than smaller add-on acquisitions.

If your practice generates substantial EBITDA and has management infrastructure, it may qualify as a platform opportunity.

Why Multiples Vary by Buyer Type

• Private equity buyers focus on scalability
• Hospitals prioritize strategic alignment
• Independent physician buyers focus on income replacement

Understanding buyer motivation improves negotiation leverage.

Important Note

Multiples fluctuate based on market cycles and capital availability. Relying on outdated transaction rumors can mislead expectations.