Specialist valuations for Australian medical and dental practices.
For practice transfers, partnership changes, retirement and succession, and group consolidation. Methodology selected for owner-operator and partnership structures.
Medical and dental practice valuations require methodology calibrated for owner-operator businesses with significant practitioner dependency, regulated billing structures, and concentration of revenue around named practitioners. Prismi prepares evidence-led valuations for practice sales and transfers, partnership entries and exits, related-party transfers between practitioner family entities, retirement and succession matters, and group consolidation transactions.
What makes a medical or dental practice valuation different
Practitioner dependency is the defining feature. Revenue is typically tied to named practitioners; transferability of patient base depends on the structure of the transfer; goodwill is partly personal and partly transferable. The valuation methodology must distinguish between transferable enterprise value and personal goodwill, particularly for CGT and related-party transfer purposes. Normalisation adjustments for practitioner remuneration above or below market are commonly required.
Methodology considerations
Capitalisation of maintainable earnings is typically the primary methodology, with EBITDA multiples from healthcare transaction comparables as a cross-check. Net asset value is rarely the primary method but is informative for asset-heavy practices. The supportable range often spans a wider band than other industries because practitioner dependency and patient transferability are judgement-heavy. The Defensible Valuation File tier is often appropriate for higher-value practices.
Common engagement types
- ·Practice sale to incoming practitioner or group
- ·Partnership entry and exit valuations
- ·Related-party transfers to family entities or self-managed super funds
- ·Practice merger or group consolidation
- ·Retirement and succession planning
- ·Small business CGT concession claims on practice exit
Common questions.
How is practitioner dependency reflected in the valuation?+
Through a combination of risk discount in the discount rate or multiple, separation of personal versus transferable goodwill, and explicit limitations stated in the report. Where the practitioner is not continuing after the transaction, the supportable position is typically more conservative than where they are.
Do you value allied health practices the same way?+
Similar framework with adjustments for the specific allied health sub-sector. Practitioner dependency, billing structure and transferability vary across physiotherapy, psychology, optometry and other allied health practices. Methodology is calibrated accordingly.
Discuss your engagement.
Fifteen-minute discovery call. We confirm scope, tier and indicative fee.
Talk to a valuer