# Dental and medical practice valuation: selling a practice

> How dental, medical and veterinary practices are valued: collections, EBITDA multiples, goodwill, DSO and private equity buyers, and patient records in a sale.

Canonical: https://origindatapartners.com/guides/medical-dental-practice-valuation
By: Origin Data Partners
Status: Published
Published: 2026-11-05
Updated: 2026-11-05
Sources checked: 2026-11-05

## Quick answer

Dental, medical and veterinary practices are valued on their earnings and their goodwill: the likelihood that patients keep coming back after a sale. Dental practices are still often benchmarked as a share of collections; a 2019 Baker Tilly guide put the typical range at 50% to 80% of average annual net receipts. Corporate buyers price on adjusted EBITDA instead: Mercer Capital reported in 2025 that DSOs typically acquire dental practices at 4 to 7 times EBITDA, and VetPartners reported corporate veterinary multiples of 8 to 12 times after a 2021 peak of 18 to 22. Patient records are usually among the assets sold. HIPAA counts the sale or transfer of a practice to another covered entity as health care operations, and state rules set how long records are kept and how patients are told. De-identified charts and imaging can also be licensed separately: published buyer ranges run $80K to $820K for medical practices with 10+ clinicians or 2,500+ patients. Origin values those records, not the practice.

## Key points

- Use a practice valuator who knows your field: collections, excess earnings and EBITDA methods give different numbers for the same practice.
- Corporate buyers pay higher multiples but set the terms: equity rollover, earnouts and years of staying on.
- HIPAA lets patient records go to the buyer in a practice sale. De-identified copies are a separate asset; value them before you sign.

## How dental and medical practices are valued

Before you sign a letter of intent, check what the practice's records are worth on their own. AI developers now license de-identified clinical records, such as charts with physician notes and imaging studies with their signed reads, separately from any sale of the practice ([published ranges](https://origindatapartners.com/guides/license-patient-records-ai-training)). A [free valuation](https://origindatapartners.com/check-fit) takes six questions about the practice and no files or patient data.

For the practice itself, use a valuator. Origin is not a practice valuator and does not appraise practices. The [ADA](https://www.ada.org/resources/careers/buying-or-selling-a-dental-practice-start-with-an-accurate-valuation) advises a valuator who works with professional practices, preferably in the dental industry, and the same logic applies to medical and veterinary practices. The value has three parts: hard assets, accounts receivable and goodwill, and goodwill usually has the most variation and is the most significant ([NACVA](https://nacva.valusource.com/the-goodwill-value-of-medical-and-dental-practices/)). Most valuations run several formulas and average them ([Baker Tilly](https://www.bakertilly.com/insights/a-dentists-guide-to-dental-practice-valuation-methods)). The common methods:

| Method | How it works | Where it is used |
| --- | --- | --- |
| Share of collections (annual net receipts) | Value as a percentage of average annual net receipts over the last three years, with the percentage drawn from recent practice sales in the state and region | Dental rule of thumb; it looks at collections, not profit ([Baker Tilly](https://www.bakertilly.com/insights/a-dentists-guide-to-dental-practice-valuation-methods)) |
| Capitalized excess earnings | Average net receipts minus operating expenses and professional compensation for the doctor, divided by a capitalization rate that reflects risk | Dental valuations ([Baker Tilly](https://www.bakertilly.com/insights/a-dentists-guide-to-dental-practice-valuation-methods)); goodwill in medical practices ([MGMA](https://www.mgma.com/articles/establishing-the-value-of-goodwill-using-the-excess-earnings-method)) |
| Multiple of EBITDA | Adjusted EBITDA, with owner pay brought to fair market value and nonrecurring or discretionary costs removed, times a multiple | Today's most common reference point for medical practices ([Physicians Practice](https://www.physicianspractice.com/view/medical-practice-valuations)); DSO and corporate veterinary deals |
| Discounted cash flow | Revenue and expenses projected over a reasonable period and discounted to today | The most common income-approach method for physician practices ([Physicians Practice](https://www.physicianspractice.com/view/valuation-strategies-physicians-practices)) |
| Asset value | Appraised tangible assets (equipment, leasehold improvements, supplies) plus intangibles (goodwill and patient lists) | One of the formulas averaged in dental valuations ([Baker Tilly](https://www.bakertilly.com/insights/a-dentists-guide-to-dental-practice-valuation-methods)) |

Source: [Baker Tilly: A dentist's guide to dental practice valuation methods (June 2019)](https://www.bakertilly.com/insights/a-dentists-guide-to-dental-practice-valuation-methods)

## Dental practice valuation: share of collections and EBITDA

Dental practices have long been priced as a share of collections. In a 2019 guide, [Baker Tilly](https://www.bakertilly.com/insights/a-dentists-guide-to-dental-practice-valuation-methods) put the typical range at 50% to 80% of average annual net receipts, and warned that the method ignores profit: a fee-for-service practice collecting $900,000 may be very different from a PPO practice collecting $900,000. The same guide gives the other benchmarks valuators use, and buyers backed by private equity price on EBITDA instead:

- Treat the percentages as a starting point. Baker Tilly calls the receipts method a relatively quick rule of thumb and notes the percentage can vary greatly from practice to practice.
- The [ADA](https://www.ada.org/resources/careers/buying-or-selling-a-dental-practice-start-with-an-accurate-valuation) lists six situations that call for a valuation: selling the whole practice, selling part of it, a future sale to an associate, long-term financial planning, forming a partnership or group, and a divorce settlement.

| Benchmark | Reported range | Source |
| --- | --- | --- |
| Practice value, annual net receipts method | 50% to 80% of average annual net receipts | [Baker Tilly (2019)](https://www.bakertilly.com/insights/a-dentists-guide-to-dental-practice-valuation-methods) |
| Goodwill, as a share of receipts | 40% to 60% of average annual receipts is common, varying by location | [Baker Tilly (2019)](https://www.bakertilly.com/insights/a-dentists-guide-to-dental-practice-valuation-methods) |
| Capitalization rate, excess earnings method | Typically 15% to 30%; the doctor's compensation is typically estimated at 35% of doctor production | [Baker Tilly (2019)](https://www.bakertilly.com/insights/a-dentists-guide-to-dental-practice-valuation-methods) |
| Practice value, average annual earnings method | 150% to 200% of the average annual earnings available to the owners, in a non-rural community | [Baker Tilly (2019)](https://www.bakertilly.com/insights/a-dentists-guide-to-dental-practice-valuation-methods) |
| DSO acquisition price | 4 to 7 times EBITDA, or 1 to 1.5 times revenue | [Mercer Capital (2025)](https://mercercapital.com/insights/posts/2025/dental-service-organizations/) |

Source: [Baker Tilly: A dentist's guide to dental practice valuation methods (June 2019)](https://www.bakertilly.com/insights/a-dentists-guide-to-dental-practice-valuation-methods)

## Medical practice valuation: EBITDA multiples by specialty

Practice values used to be stated as a percentage of collections, but today's most common reference point is a multiple of EBITDA ([Physicians Practice](https://www.physicianspractice.com/view/medical-practice-valuations)). Before the multiple is applied, owner compensation is brought to fair market value and nonrecurring and discretionary expenses are removed. A solo practice is traditionally valued on its historical performance; a group practice is usually valued on a forecast. A private equity firm will likely pay a higher multiple on a lower EBITDA, a strategic buyer a lower multiple on a higher EBITDA.

Multiples vary widely by specialty and size. [FOCUS Investment Banking](https://focusib.com/insights/article/physician-practice-ma-multiples/), an M&A adviser to practices, reported these EV/EBITDA ranges in August 2026, compiled from 2024 and 2025 transactions; platform deals command 3 to 5 turns more than add-ons, and practices with under $1 million of EBITDA were put at 5 to 7 times:

- Goodwill in a smaller practice is often valued another way. Under the excess earnings method described by [MGMA](https://www.mgma.com/articles/establishing-the-value-of-goodwill-using-the-excess-earnings-method), goodwill equals the difference between the current owner's total compensation and the compensation of a new physician starting out of residency.
- FOCUS presents the ranges for educational purposes only, not as a guarantee of any outcome; actual pricing varies with scale, ancillaries, payor mix, growth and other factors ([FOCUS](https://focusib.com/insights/article/physician-practice-ma-multiples/)).

| Specialty | Platform transactions | Add-on transactions |
| --- | --- | --- |
| Primary care (family and internal medicine, pediatrics) | 8x to 12x | 3x to 6x |
| Cardiology | 12x to 15x | 8x to 12x |
| Orthopedics and sports medicine | 9x to 13x | 6x to 9x |
| Gastroenterology | 10x to 14x | 7x to 9x |
| Ophthalmology, including retina | 12x to 20x | 7x to 11x |
| Ob/Gyn and women's health | 10x to 14x | 5x to 8x |

Source: [Physicians Practice: Medical practice valuations (May 2024)](https://www.physicianspractice.com/view/medical-practice-valuations)

## Veterinary practice valuation: fair market value vs corporate offers

The standard metric for valuing a veterinary practice is often a multiple of EBITDA, and the number depends on who is buying ([VetPartners](https://vetpartners.org/news/688806/Whats-New-in-Veterinary-Practice-Valuation.htm)). A sale to another veterinarian is made at fair market value, where the practice's profits pay for it and the buyer can typically secure 100% financing. Those sales are highly driven by geography, because buyers typically won't move. Corporate and private equity buyers pay investment value, specific to what the practice is worth to them.

For corporate prices, multiples hit a peak of 18 to 22 times EBITDA in 2021 and then reset to 8 to 12, with larger practices in active negotiations reaching 12 to 14 or higher, VetPartners reported in December 2024:

- Corporate interest is strongest for larger practices, such as those grossing more than $1.5 million to $2 million.
- Read the terms as closely as the price: cash vs equity, promissory notes, earnouts and facility lease terms all decide what the seller actually receives.
- Have the practice valued every three to five years, even with no sale in view.

|  | Fair market value | Investment value |
| --- | --- | --- |
| Typical buyer | Another veterinarian | Corporate veterinary groups and private equity |
| Price basis | What a willing buyer would pay a willing seller, both with reasonable knowledge and neither compelled | What the practice is worth to that buyer: synergies, growth potential, cost savings |
| Reported multiple | Not reported; the price is one the practice's profits will pay for | 8x to 12x EBITDA, 12x to 14x or higher for larger practices |
| Payment | Buyer can typically secure 100% financing | Cash, equity, promissory notes and earnouts |
| Commitment | Agreed in the sale | Owners typically stay 3 to 5 years, and all associates at least 1 year |

Source: [VetPartners: What's new in veterinary practice valuation? (Dec 2024)](https://vetpartners.org/news/688806/Whats-New-in-Veterinary-Practice-Valuation.htm)

## What drives the value of a practice

Goodwill is the likelihood that patients will keep returning regardless of which doctors are in the practice, plus the referral patterns that keep sending patients to it ([NACVA](https://nacva.valusource.com/the-goodwill-value-of-medical-and-dental-practices/)). Anything that makes that more likely to survive a sale raises the price.

- Institutional, not personal, goodwill. The workforce, systems, patient base and referring doctors transfer to a buyer. The doctor's personal reputation generally does not, so it is not usually part of the goodwill value. A non-compete agreement is often a significant measure of goodwill, because the buyer will not face competition from the seller ([NACVA](https://nacva.valusource.com/the-goodwill-value-of-medical-and-dental-practices/)).
- The ADA's list. A valuator will weigh location and visibility, sources of revenue, growth potential, patient attraction and retention rates, projected retention after the sale, the condition and age of equipment including imaging, the office space and long-term trends in revenue and profit margin ([ADA](https://www.ada.org/resources/careers/buying-or-selling-a-dental-practice-start-with-an-accurate-valuation)).
- Staff, payors and services. Location, trained staff, a stable or growing revenue stream, payor mix, the condition of the facility, the mix of services, patient demographics and profitability all influence multiples. Higher multiples go to practices with a qualified management team and documented policies and procedures ([Physicians Practice](https://www.physicianspractice.com/view/medical-practice-valuations)).
- Diversified payors and ancillary revenue. Practices with both achieve multiples up to 2 times higher, according to [FOCUS](https://focusib.com/insights/article/physician-practice-ma-multiples/).
- Practice metrics. The ADA's due-diligence list includes active patients, dentist and hygiene production, new patients per month, case acceptance, recare scheduling, collection rate and the fee-for-service to managed care ratio ([ADA tip sheet](https://www.ada.org/-/media/project/ada-organization/ada/ada-org/files/publications/guidelines-for-practice-success/gps-managing-professional-risks/tip-sheet-on-what-to-do-when-selling-a-practice.pdf)).

Source: [NACVA: The goodwill value of medical and dental practices](https://nacva.valusource.com/the-goodwill-value-of-medical-and-dental-practices/)

## Selling to a DSO, a private equity platform, a hospital or an associate

Each buyer type prices and structures the deal differently:

- Corporate affiliation is now common in dentistry. In 2024, more than 1 in 4 dentists up to 10 years out of dental school were affiliated with a DSO, according to the [ADA Health Policy Institute](https://adanews.ada.org/new-dentist/2025/november/hpi-more-new-dentists-affiliated-with-dsos/), and [Mercer Capital](https://mercercapital.com/insights/posts/2025/dental-service-organizations/) reported that around 27% of general practices were affiliated with DSOs.

| Buyer | How the deal usually works | What to watch | Source |
| --- | --- | --- | --- |
| Dental support organization (DSO) | Acquires at least 70% of the practice's equity, typically at 4 to 7 times EBITDA, and offers the owner an option to roll equity into the fund | The practice then pays the DSO a fixed percentage of its profits every year | [Mercer Capital](https://mercercapital.com/insights/posts/2025/dental-service-organizations/) |
| Private equity platform or add-on | Platform investments command premium multiples; add-on acquisitions of smaller groups trade at mid- to high-single-digit levels | A higher multiple can come with a lower EBITDA after the buyer's adjustments | [FOCUS](https://focusib.com/insights/article/physician-practice-ma-multiples/); [Physicians Practice](https://www.physicianspractice.com/view/medical-practice-valuations) |
| Corporate veterinary group | Investment value; 8 to 12 times EBITDA reported after the 2021 peak | Staying 3 to 5 years; cash vs equity, notes, earnouts, lease terms | [VetPartners](https://vetpartners.org/news/688806/Whats-New-in-Veterinary-Practice-Valuation.htm) |
| Hospital or health system | The physician sells the practice and becomes an employee of the hospital or a hospital-based group | Compensation and employment terms after the sale | [The Fox Group](https://www.foxgrp.com/assessment-benchmarks/medical-practice-valuation-what-factors-matter-most/) |
| Associate or another doctor | A full sale, or a phased buyout: part of the practice now and the rest later | Set the valuation early so both sides know the starting value and any change during the transition | [ADA](https://www.ada.org/resources/careers/buying-or-selling-a-dental-practice-start-with-an-accurate-valuation) |

Source: [Mercer Capital: Dental service organizations (Sept 2025)](https://mercercapital.com/insights/posts/2025/dental-service-organizations/)

## What happens to patient records when you sell a practice

Patient records are usually part of what is sold: [The Fox Group](https://www.foxgrp.com/assessment-benchmarks/medical-practice-valuation-what-factors-matter-most/) lists the medical records, digital or paper, among a practice's tangible assets. HIPAA allows the transfer. Its definition of health care operations includes the sale, transfer, merger or consolidation of all or part of a covered entity with another covered entity, or with an entity that will become one, and the related due diligence ([45 CFR 164.501](https://www.ecfr.gov/current/title-45/subtitle-A/subchapter-C/part-164/subpart-E/section-164.501)). The rule against selling protected health information expressly excludes those disclosures ([45 CFR 164.502](https://www.ecfr.gov/current/title-45/subtitle-A/subchapter-C/part-164/subpart-E/section-164.502)).

The profession adds duties to patients. The AMA's ethics code says physicians should make the record available to the succeeding physician when a practice is sold, never refuse to transfer a record at a patient's request, and tell patients how to access stored records and for how long they will be available ([AMA Opinion 3.3.1](https://code-medical-ethics.ama-assn.org/ethics-opinions/management-medical-records)). The ADA tells sellers to pay special attention to contract language on patient records and access to them ([ADA tip sheet](https://www.ada.org/-/media/project/ada-organization/ada/ada-org/files/publications/guidelines-for-practice-success/gps-managing-professional-risks/tip-sheet-on-what-to-do-when-selling-a-practice.pdf)). State rules set the details. The federal baseline and three state examples:

- Veterinary practices: HIPAA does not apply to animals, but some states strictly regulate disclosure of veterinary patient and client data without consent, and many state practice acts require medical records to be kept confidential ([JAVMA](https://avmajournals.avma.org/view/journals/javma/255/3/javma.255.3.282.xml)).
- Name a records custodian in the purchase agreement, with how long the buyer will keep the records and how the seller can reach them to answer a claim or a board inquiry.

| Rule | What it requires | Source |
| --- | --- | --- |
| HIPAA | No medical record retention period; state laws generally govern. Safeguards apply for as long as records are kept, including disposal | [HHS](https://www.hhs.gov/hipaa/for-professionals/faq/580/does-hipaa-require-covered-entities-to-keep-medical-records-for-any-period/index.html) |
| HHS on winding up | Consider letting patients pick up their records before any disposition; many states require records to be retained and available for a limited time after a business dissolves | [HHS](https://www.hhs.gov/hipaa/for-professionals/faq/575/what-does-hipaa-require-of-covered-entities-when-they-dispose-information/index.html) |
| Florida | The health professional boards listed in the statute must set rules for the records of a practitioner who dies, terminates practice or relocates, and the records must be kept for at least 2 years afterwards | [Fla. Stat. 456.058](http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0400-0499/0456/Sections/0456.058.html) |
| Oregon | Licensees ending practice must ensure safe storage and access: notify patients by letter (at least 30 days ahead is suggested), say where the records are, and tell the Oregon Medical Board the location. As a guideline, not a requirement, the Board advises keeping records at least 10 years after the patient's last contact | [Oregon Medical Board](https://www.oregon.gov/omb/topics-of-interest/pages/patient-records.aspx) |
| Washington (osteopathic physicians) | Board guideline: notify active patients and those seen in the last 3 years, preferably 90 days and no later than 30 days before closing. Keep records 10 years after the last visit, 21 years after treating a pregnant woman or an infant, and Medicare and Medicaid claim records 6 years and 3 months after the bill is paid | [Washington Department of Health](https://doh.wa.gov/sites/default/files/legacy/Documents/2300/RetentionOfMedicalRecords_And_PatientNotification.pdf) |

Source: [eCFR: 45 CFR 164.501, definition of health care operations](https://www.ecfr.gov/current/title-45/subtitle-A/subchapter-C/part-164/subpart-E/section-164.501)

## Before you sign or close, check what the clinical records are worth

When a practice is sold, the patient records normally go to the buyer with the other assets. When it closes, they go into storage and are eventually destroyed. Either way, the chance to license a de-identified copy usually ends there. Checking the value first takes minutes: [see what the practice's records are worth](https://origindatapartners.com/check-fit) from six questions, with no files and no patient data.

- Raise it before the letter of intent. The practice may be able to license de-identified copies before closing, or keep that right in the purchase agreement, with the buyer told. [Licensing company data when you sell the business](https://origindatapartners.com/guides/license-company-data-when-selling-business) covers the options.
- Check your software contracts. Writing for veterinarians, [JAVMA](https://avmajournals.avma.org/view/journals/javma/255/3/javma.255.3.282.xml) warns that practice software licensing agreements may limit your rights to access your own data or to provide it to third parties, and may let the vendor aggregate and sell combined data sets. EHR contracts deserve the same check.
- Never send patient records to anyone to test their value. A records valuation needs specialty, patient counts, years and systems, not charts.
- Closing rather than selling? Follow the [closing checklist](https://origindatapartners.com/guides/closing-a-business-checklist), and see [selling company data after closing](https://origindatapartners.com/guides/sell-company-data-after-closing).


## De-identified clinical and imaging records: a separate asset

Identifiable patient records cannot simply be sold: a covered entity may not sell protected health information except with authorizations that meet HIPAA's requirements ([45 CFR 164.502](https://www.ecfr.gov/current/title-45/subtitle-A/subchapter-C/part-164/subpart-E/section-164.502)). De-identified data is different. HIPAA gives two methods, Expert Determination and Safe Harbor, and regardless of the method the Privacy Rule does not restrict the use or disclosure of de-identified health information, as it is no longer considered protected health information ([HHS](https://www.hhs.gov/hipaa/for-professionals/special-topics/de-identification/index.html)).

Published buyer ranges run $80K to $820K for practices with 10+ clinicians or 2,500+ patients and longitudinal charts with free-text physician notes, and $80K to $620K for imaging and diagnostics centers of any size. The requirements are in [licensing patient records](https://origindatapartners.com/guides/license-patient-records-ai-training) and [licensing medical imaging data](https://origindatapartners.com/guides/license-medical-imaging-data-ai), and the [deals tracker](https://origindatapartners.com/guides/ai-data-licensing-deals) lists public prices for company records as reported.

Medical ethics set a higher bar than the law. Physicians who propose to permit third-party access to patient information for commercial purposes should only provide data that has been de-identified and fully inform each patient whose record would be involved ([AMA Opinion 3.2.4](https://code-medical-ethics.ama-assn.org/ethics-opinions/access-medical-records-data-collection-companies)).

- Dental and veterinary records: the published ranges above are for medical practices, health systems and imaging centers. Check fit before assuming a dental or veterinary archive has the same value.
- Veterinary data needs care: California's code does not specifically authorize disclosure of de-identified data without client consent and provides for potential criminal penalties ([JAVMA](https://avmajournals.avma.org/view/journals/javma/255/3/javma.255.3.282.xml)).
- De-identification happens before anything leaves the practice. See [how to de-identify company data](https://origindatapartners.com/guides/de-identify-company-data-before-licensing).

Source: [HHS: Methods for de-identification of PHI](https://www.hhs.gov/hipaa/for-professionals/special-topics/de-identification/index.html)

## Practice value vs records value

They are different numbers from different people. Origin is not a practice valuator: it does not appraise practices, goodwill or equipment for a sale, a buy-in, a loan or a divorce. It estimates what AI developers could pay to license de-identified copies of a practice's records, and helps the owner compare buyers.

|  | Practice valuation | Records valuation |
| --- | --- | --- |
| Question it answers | What the practice, or a share of it, is worth to a buyer | What AI developers could pay to license de-identified copies of its records |
| Who does it | A valuator who works with professional practices, preferably in your field | A data partner such as Origin. The free valuation is an estimate, not an appraisal |
| Based on | Collections, adjusted earnings or EBITDA, goodwill and hard assets | Specialty, patient count, years of history, depth of notes, imaging with reads, and whether the practice may license the data |
| What you provide | Financial statements, tax returns, staffing costs, an equipment inventory and practice metrics | Answers to six questions; no files or patient data |
| Result | A value or price range for the practice | An estimate of what AI companies could pay for the records, from $20K to $5M |
| In an asset sale | Goodwill and going concern value are Class VII assets on Form 8594 | Business books and records are Class VI section 197 intangibles on Form 8594 |
| After the sale | Belongs to the buyer | Also the buyer's, unless the purchase agreement keeps a licensing right for the seller |

Source: [IRS: Instructions for Form 8594, asset acquisition statement](https://www.irs.gov/instructions/i8594)

## Checklist for selling a dental, medical or veterinary practice

Most of these steps come from the [ADA tip sheet on selling a practice](https://www.ada.org/-/media/project/ada-organization/ada/ada-org/files/publications/guidelines-for-practice-success/gps-managing-professional-risks/tip-sheet-on-what-to-do-when-selling-a-practice.pdf); they apply to medical and veterinary practices too.

- Decide on speed. The ADA calls four to six weeks from listing to closing the ideal, because a short sale could reduce the number of patients who look for a new dentist.
- Build the team: a practice valuator, ideally one who specializes in your field; an attorney experienced in practice sales; a certified accountant; and a financial adviser for the proceeds.
- Get the practice valued, and keep doing it every three to five years while no sale is in view (VetPartners).
- Gather due diligence: financial statements and balance sheets, federal tax returns, staff contracts and costs, an inventory of equipment, facility and lease documents, compliance records and practice metrics.
- Decide who keeps the patient records, where and for how long, and write record custody and access into the contract.
- Plan patient notices under your state's rules: at least 30 days ahead is suggested in Oregon, and Washington's osteopathic board prefers 90 days.
- Make a notification list: staff, vendors, your professional liability carrier, benefit plans you contract with, referring doctors, utilities and the landlord.
- Read the terms beyond the price: restrictive covenants, how goodwill transitions, receivables, the lease, equipment ownership, staff retention, equity rollover, earnouts and how long you must stay.
- Before signing, decide whether the practice will license de-identified records, and get them valued.

Source: [ADA Guidelines for Practice Success: Tip sheet on what to do when selling a practice](https://www.ada.org/-/media/project/ada-organization/ada/ada-org/files/publications/guidelines-for-practice-success/gps-managing-professional-risks/tip-sheet-on-what-to-do-when-selling-a-practice.pdf)

## Next step

Have the practice valued by a valuator who knows your field, and have the records valued before the letter of intent is signed. The records valuation takes six questions and no patient data.

Origin Data Partners is independent and is not affiliated with any AI data buyer. We help owners compare buyers and find the best fit for their records. [See what your data is worth](https://origindatapartners.com/check-fit).


## Questions and answers

### How much is a dental practice worth?

It depends on collections, profit and goodwill. A 2019 Baker Tilly guide put the typical range at 50% to 80% of average annual net receipts over the last three years, with goodwill often 40% to 60% of receipts. Buyers backed by private equity price on EBITDA instead: Mercer Capital reported in 2025 that DSOs typically acquire practices at 4 to 7 times EBITDA, or 1 to 1.5 times revenue. A valuator who specializes in dental practices gives the real figure.

### How are medical practices valued?

The most common reference point today is a multiple of adjusted EBITDA, with the owner's pay brought to fair market value and one-off costs removed. Multiples vary by specialty and size: one M&A adviser reported primary care platform deals at 8 to 12 times EBITDA and add-ons at 3 to 6 times in 2026. Goodwill can also be valued by the excess earnings method, comparing the owner's pay with a new physician's.

### How much is a veterinary practice worth?

A sale to another veterinarian is made at fair market value, a price the practice's profits can pay for. Corporate buyers pay investment value: after a 2021 peak of 18 to 22 times EBITDA, corporate multiples reset to 8 to 12 times, with larger practices negotiating 12 to 14 or higher, VetPartners reported in December 2024. High prices usually require the owner to stay three to five years.

### How do I sell my dental practice?

Have it valued by a dental practice valuator, hire an attorney and an accountant experienced in practice sales, gather financial statements, tax returns, an equipment inventory and patient-base metrics, and decide whether to sell to a DSO, another dentist or an associate. The ADA calls four to six weeks from listing to closing the ideal. Write patient record custody and access into the contract.

### How do I sell a medical practice?

Get a valuation from a valuator who knows your specialty, choose the buyer type (a private equity platform, a hospital or health system, or another physician), and prepare normalized financials with owner pay at fair market value. Agree who keeps the patient records and how patients will be told, following your state board's rules, and read the terms beyond price, such as equity rollover and how long you must stay.

### Do patients have to consent when a practice and its records are sold?

Not under HIPAA. Its definition of health care operations includes the sale, transfer or merger of a covered entity with another covered entity, and the ban on selling protected health information excludes those transfers. State rules and medical ethics still require patients to be told how to reach their records, and the AMA says physicians should never refuse a patient's request to transfer a record.

### What happens to patient records when a medical practice closes?

State law decides how long they are kept and how patients are told. HIPAA sets no retention period but requires safeguards until disposal, and HHS suggests letting patients pick up their records before any disposition. Florida requires records to be kept at least 2 years after a practitioner terminates practice; Oregon's medical board advises 10 years after the last contact and wants to know where records are stored.

### Can a practice sell patient data to AI companies?

Not identifiable data without each patient's authorization. Data de-identified under HIPAA's Expert Determination or Safe Harbor method is no longer protected health information, and published buyer ranges for medical practices with 10+ clinicians or 2,500+ patients run $80K to $820K. The AMA's ethics guidance adds that physicians should provide only de-identified data and inform the patients involved.

## Sources

- [American Dental Association: Buying or selling a dental practice, start with an accurate valuation](https://www.ada.org/resources/careers/buying-or-selling-a-dental-practice-start-with-an-accurate-valuation)
- [ADA Guidelines for Practice Success: Tip sheet on what to do when selling a practice](https://www.ada.org/-/media/project/ada-organization/ada/ada-org/files/publications/guidelines-for-practice-success/gps-managing-professional-risks/tip-sheet-on-what-to-do-when-selling-a-practice.pdf)
- [ADA News: HPI, more new dentists affiliated with DSOs (Nov 2025)](https://adanews.ada.org/new-dentist/2025/november/hpi-more-new-dentists-affiliated-with-dsos/)
- [Baker Tilly: A dentist's guide to dental practice valuation methods (June 2019)](https://www.bakertilly.com/insights/a-dentists-guide-to-dental-practice-valuation-methods)
- [Mercer Capital: Dental service organizations (Sept 2025)](https://mercercapital.com/insights/posts/2025/dental-service-organizations/)
- [Physicians Practice: Medical practice valuations (May 2024)](https://www.physicianspractice.com/view/medical-practice-valuations)
- [Physicians Practice: Valuation strategies for physicians' practices](https://www.physicianspractice.com/view/valuation-strategies-physicians-practices)
- [FOCUS Investment Banking: Physician practice M&A multiples, 2026 data (Aug 2026)](https://focusib.com/insights/article/physician-practice-ma-multiples/)
- [MGMA: Establishing the value of goodwill using the excess earnings method](https://www.mgma.com/articles/establishing-the-value-of-goodwill-using-the-excess-earnings-method)
- [NACVA: The goodwill value of medical and dental practices](https://nacva.valusource.com/the-goodwill-value-of-medical-and-dental-practices/)
- [The Fox Group: Medical practice valuation, what factors matter most (Sept 2024)](https://www.foxgrp.com/assessment-benchmarks/medical-practice-valuation-what-factors-matter-most/)
- [VetPartners: What's new in veterinary practice valuation? (Dec 2024)](https://vetpartners.org/news/688806/Whats-New-in-Veterinary-Practice-Valuation.htm)
- [JAVMA: Maintaining medical record confidentiality and client privacy in the era of big data (2019)](https://avmajournals.avma.org/view/journals/javma/255/3/javma.255.3.282.xml)
- [eCFR: 45 CFR 164.501, definition of health care operations](https://www.ecfr.gov/current/title-45/subtitle-A/subchapter-C/part-164/subpart-E/section-164.501)
- [eCFR: 45 CFR 164.502, sale of protected health information](https://www.ecfr.gov/current/title-45/subtitle-A/subchapter-C/part-164/subpart-E/section-164.502)
- [HHS: Methods for de-identification of PHI](https://www.hhs.gov/hipaa/for-professionals/special-topics/de-identification/index.html)
- [HHS: Does HIPAA require covered entities to keep medical records for any period?](https://www.hhs.gov/hipaa/for-professionals/faq/580/does-hipaa-require-covered-entities-to-keep-medical-records-for-any-period/index.html)
- [HHS: What HIPAA requires when covered entities dispose of protected health information](https://www.hhs.gov/hipaa/for-professionals/faq/575/what-does-hipaa-require-of-covered-entities-when-they-dispose-information/index.html)
- [AMA Code of Medical Ethics, Opinion 3.3.1: Management of medical records](https://code-medical-ethics.ama-assn.org/ethics-opinions/management-medical-records)
- [AMA Code of Medical Ethics, Opinion 3.2.4: Access to medical records by data collection companies](https://code-medical-ethics.ama-assn.org/ethics-opinions/access-medical-records-data-collection-companies)
- [Florida Statutes section 456.058: records of practitioners relocating or terminating practice](http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0400-0499/0456/Sections/0456.058.html)
- [Oregon Medical Board: Patient records](https://www.oregon.gov/omb/topics-of-interest/pages/patient-records.aspx)
- [Washington State Department of Health: Board of Osteopathic Medicine and Surgery guideline OP04-29 on closing a practice](https://doh.wa.gov/sites/default/files/legacy/Documents/2300/RetentionOfMedicalRecords_And_PatientNotification.pdf)
- [IRS: Instructions for Form 8594, asset acquisition statement](https://www.irs.gov/instructions/i8594)

## Related reading

- [Can a medical practice license patient records to AI companies?](https://origindatapartners.com/guides/license-patient-records-ai-training)
- [Licensing medical imaging and diagnostic data to AI companies](https://origindatapartners.com/guides/license-medical-imaging-data-ai)
- [What is my business worth? How business valuation works](https://origindatapartners.com/guides/what-is-my-business-worth)
- [Selling your business or practice: can you license its data separately?](https://origindatapartners.com/guides/license-company-data-when-selling-business)
- [How to de-identify company data before licensing it](https://origindatapartners.com/guides/de-identify-company-data-before-licensing)