There is no magic formula for practice valuation the true value of a practice is the amount someone is willing to pay we believe the asset valuation method to be most appropriate for valuing a medical practice have a trusted accountant check your asset allocations before you sign a sales contract. Valuation philosophy the approach i take to determine practice value is to establish what is the added benefit of owning the practice versus being employed if a shareholder makes 250000 for a given year and an employed physician at the same practice makes 180000 the added benefit for owning the practice is 70000. A medical practice valuation is a complex and subjective process as the asking price is not always indicative of what the practice is worth or what it will sell for in many cases sellers will believe that their practice is worth more than it actually is because they associate their hard work and time spent building the practice to the price however this has no relevance to the buyer and is often what causes disparity between the buyer and seller. Using medical practice valuation multiples or multipliers is one simple method take the practices annual revenues and multiply them by 15 or 2 to set a value this is sometimes described as the medical practice valuation rule of thumb because its a quick judgment its not necessarily the best judgment though